JSE-listed Blue Label Telecoms is buying back the 12% stake Microsoft bought in it in 2007. At the same time, Microsoft SA MD Mteto Nyati is stepping down from Blue Label’s board of directors.
Microsoft is selling the shares at a loss. It bought them for R6,75/share and is exiting at R4,25, a discount to Blue Label’s share price.
Blue Label plans to cancel the shares once the deal, which is subject to shareholder and other approvals, is concluded. It hopes the transaction will take place on 1 December.
Microsoft originally bought the stake in Blue Label and entered into partnership with the company to “exercise commercially reasonable efforts to provide mutual assistance to one another in exploring new business opportunities.”
Blue Label is a significant reseller of airtime and related products and solutions. It’s not clear if anything significant ever flowed from its partnership with Microsoft. — Staff reporter, TechCentral
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