Blue Label Telecoms agreed to sell its interest in 3G Mobile and Blue Label Mobile.

 

Blue Label Telecoms has announced that it will sell its shareholding in Blue Label Mobile to DNI 4PL Contracts Proprietary Limited (DNI).

In terms of this transaction, Blue Label will sell 85% of Blue Label Mobile issued shares and all claims on loan to DNI 809.

The price consideration payable by DNI to Blue Label in respect of the deal is R350 million.

Blue Label Telecoms also announced that its subsidiary, The Prepaid Company (TPC), has agreed to sell its interest in 3G Mobile. It added that this transaction excludes its share capital held in and loan claims against Comm Equipment Company Proprietary Limited (CEC) to DNI.

TPC will sell 100% of the issued shares in 3G Mobile to DNI for R544 million.

3G Mobile distributes mobile devices and handsets to major retailers and cellular network providers.

Both deals are subject to various suspensive conditions including shareholder approval.

 “The Blue Label group has consistently generated positive cash flows from its trading operations since its listing. These funds have been applied to dividend distributions, share buy-backs and investing activities, at all times ensuring sufficient surplus funds to facilitate working capital requirements,” the company said.
Scroll to Top