JSE-listed Blue Label is set to receive its R544-million asking price, after all suspensive conditions relating to the disposal of subsidiary The Prepaid Company’s (TPC’s) interest in the 3G Mobile handset trading operations were on Friday fulfilled.
In September last year, Blue Label announced that it would sell TPC’s interest in 3G Mobile to investment holding company DNI 4PL Contracts.
The transaction was approved by Blue Label shareholders in December, as was DNI’s bid for Blue Label’s interest in Blue Label Mobile Group.
While certain conditions precedent remain outstanding, the completion of the Blue Label Mobile Group sale transaction is at an advanced stage.
The company said in a statement on Friday that, upon fulfilment, DNI will pay Blue Label an initial R350-million of the R450-million pricetag, in addition to R81-million paid by Blue Label Mobile towards the acquisition of Hyve Mobile and Mobile Content Africa.
The remaining R100-million plus interest will be deferred in terms of the conditions.