TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentralTechCentral
    NEWSLETTER
    • News

      Standard Bank IT spending tops R10-billion in six months

      19 August 2022

      Hungry Prosus to splurge up to R30.7-billion on iFood stake

      19 August 2022

      Koeberg unit shut down due to mechanical fault

      19 August 2022

      Blue Label expects robust full-year earnings growth

      19 August 2022

      Sarb tells banks they should work with crypto exchanges

      18 August 2022
    • World

      15 September pegged as target date for ethereum’s big ‘Merge’

      19 August 2022

      Qualcomm gets serious about servers

      19 August 2022

      China blasts US over ‘discriminatory’ Chips Act

      18 August 2022

      Tencent reports first-ever sales decline

      17 August 2022

      Chip makers are flashing a big warning for the global economy

      17 August 2022
    • In-depth

      Are you a chronic procrastinator? Read this!

      18 August 2022

      Semiconductor boom turns to bust

      16 August 2022

      African unicorn Flutterwave battles fires on multiple fronts

      11 August 2022

      The length of Earth’s days has been increasing – and no one knows why

      7 August 2022

      As Facebook fades, the Mad Men of advertising stage a comeback

      2 August 2022
    • Podcasts

      Qush on infosec: why prevention is always better than cure

      11 August 2022

      e4’s Adri Führi on encouraging more women into tech careers

      10 August 2022

      How South Africa can woo more women into tech

      4 August 2022

      Book and check-in via WhatsApp? FlySafair is on it

      28 July 2022

      Interview: Why Dell’s next-gen PowerEdge servers change the game

      28 July 2022
    • Opinion

      How AI could transform financial services in emerging markets

      19 August 2022

      No reason South Africa should have a shortage of electricity: Ramaphosa

      11 July 2022

      Ntshavheni’s bias against the private sector

      8 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022
    • Company Hubs
      • 1-grid
      • Africa Data Centres
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»News»Blue Label exits Mexico JV in R188-million divestment

    Blue Label exits Mexico JV in R188-million divestment

    News By Duncan McLeod17 September 2020
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Blue Label Telecoms has sold its interest in Blue Label Mexico to its partner in the business, multinational bakery products company Grupo Bimbo, for US$11.5-million (R188-million).

    “On 16 September 2020, an agreement was concluded whereby Blue Label Telecoms would dispose
    of its 47.56% interest in Blue Label Mexico…,” the company said in a statement on the JSE’s stock exchange news service on Thursday.

    Blue Label said the disposal is in line with its strategy to refocus its efforts on its South African distribution
    businesses and to deleverage the business “to ensure a more robust and liquid balance sheet going forward”.

    The disposal is in line with Blue Label’s strategy to refocus its efforts on its South African distribution
    businesses

    The transaction is expected to be effective on Monday, 21 September, pending two outstanding conditions precedent: the waiver by a minority shareholder in Blue Label Mexico of its pre-emptive rights and the payment by Blue Label Mexico to Blue Label’s employee secondee of his salary up to 21 September.

    “The agreement contains representations and warranties in favour of Grupo Bimbo, which are standard for a transaction of this nature,” Blue Label said.

    Proceeds

    The proceeds from the disposal will be used to settle Blue Label’s total parent guarantee obligations of $3.25-million payable to RBL Bank on behalf of Oxigen Services India as well as $5.37-million as a part payment by The Prepaid Company to a special purpose vehicle (created for the acquisition of Blue Label’s stake in Cell C) against its remaining liquidity support obligations of $10-million.

    In line with Mexican taxation legislation, taxation is payable on the proceeds of the disposal, Blue Label said. As a result, the balance of the proceeds received will be applied to pay these taxes “up to a maximum of such residue”.

    The equity accounted loss after tax attributable to the investment in Blue Label Mexico for the year ended 31 May 2020 was R5.8-million.  — (c) 2020 NewsCentral Media

    Blue Label Mexico Blue Label Telecoms Cell C Grupo Bimbo top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleWoolworths reports staggering growth in e-commerce sales
    Next Article Five workplace trends in 2020 and beyond – free e-book

    Related Posts

    Standard Bank IT spending tops R10-billion in six months

    19 August 2022

    Hungry Prosus to splurge up to R30.7-billion on iFood stake

    19 August 2022

    Koeberg unit shut down due to mechanical fault

    19 August 2022
    Add A Comment

    Comments are closed.

    Promoted

    Does your contact centre have the CX factor?

    19 August 2022

    Entelek, A2pay to roll out 2 500 free Wi-Fi sites in South Africa

    18 August 2022

    Companies are drowning in data – but solutions are at hand

    18 August 2022
    Opinion

    How AI could transform financial services in emerging markets

    19 August 2022

    No reason South Africa should have a shortage of electricity: Ramaphosa

    11 July 2022

    Ntshavheni’s bias against the private sector

    8 July 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.