JSE-listed mobile telecommunications and payments specialist Blue Label Telecoms has made an offer of as much as R247m to acquire 75% of Via Media, which develops mobile content and related value-added services, from Malik Investment Holdings.
Via Media provides content using technologies such as premium-rated SMSes, multimedia messaging, the wireless application protocol, the Web, Blue Label said. Its platform connects to all four of South Africa’s mobile networks.
Blue Label told shareholders the deal will give it access to new channels for the distribution of its products and services. It is offering R144,4m for the 75% stake, plus additional amounts totalling as much as R103,1m if warranted profits are achieved during a 36-month warranty period.
Assuming the warranted profits are met, Blue Label will pay R24,1m, R24,1m and R55m for each of the next three years. An additional R112,5m or part thereof will be payable if certain “stretched targets” are achieved. These targets are over and above the warranted accumulated profits over the three-year warranty period.
The acquisition will be funded through cash resources, Blue Label said. — © 2014 NewsCentral Media