NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS l NOTE 6

6. Investments in Group companies and related loans
6.1 Investments in subsidiaries and related loans
        2013
R’000		   2012
R’000		  
Shares at cost less amounts written off       3 040 190   3 019 621  
Loans owing by subsidiaries less amounts written off       38 421   280 598  
        3 078 611   3 300 219  
  Details are reflected below:
      Shares at
cost
R’000		   Loans
owing by
subsidiaries
R’000		   Provision
for
impairment
R’000		  
2013                
Activi Technology Services Proprietary Limited     *   —   —  
Activi Deployment Services Proprietary Limited     5 060   —   —  
Africa Prepaid Services Proprietary Limited1     61 520   57 904   (119 424)  
Africa Prepaid Services Nigeria Limited1     14 000   5 113   (19 113)  
Blue Label Distribution Proprietary Limited**     194 000   —   —  
Blue Label Engage Proprietary Limited     2 735   —   —  
Blue Label Investments Proprietary Limited     108 416   —   —  
Blue Label One Proprietary Limited     40 000   —   —  
BLT USA Inc     50 540   —   —  
Budding Trade Proprietary Limited**     6 000   —   —  
Celebia Holdings Limited     *   —   —  
Cellfind SA Proprietary Limited     290 000   —   (141 841)  
Cigicell Proprietary Limited     295   —   —  
Datacel Direct Proprietary Limited     150 000   —   (16 073)  
Gold Label Investments Proprietary Limited     29 400   187 055   (175 075)  
Kwikpay SA Proprietary Limited**     22 500   —   —  
Matragon Proprietary Limited**     *   —   —  
Panacea Mobile Proprietary Limited     9 834   —   —  
The Post Paid Company Proprietary Limited**     *   —      
The Prepaid Company Proprietary Limited**     2 150 214   —   —  
TicketPros Proprietary Limited     10 000   —   —  
Transaction Junction Proprietary Limited     4 200   —   —  
Uninex Proprietary Limited     *   976      
Velociti Proprietary Limited     7 185   —   —  
Ventury Group Proprietary Limited**     98 406   —   —  
Virtual Voucher Proprietary Limited**     44 784   —   —  
      3 299 089   251 048   (471 526)  
2012                
Activi Technology Services Proprietary Limited     *   —   —  
Activi Deployment Services Proprietary Limited     5 060   —   —  
Africa Prepaid Services Proprietary Limited1     61 520   26 773   (83 574)  
Blue Label Distribution Proprietary Limited**     194 000   —   —  
Blue Label Investments Proprietary Limited     108 416   —   —  
Blue Label One Proprietary Limited     40 000   —   —  
BLT USA Inc2     50 540   —   —  
Budding Trade Proprietary Limited**     6 000   —   —  
Celebia Holdings Limited     *   —   —  
Cellfind SA Proprietary Limited     290 000   —   (141 841)  
Cigicell Proprietary Limited     295   —   —  
Content Connect Africa Proprietary Limited     27 000   —   (25 000)  
Datacel Direct Proprietary Limited1     150 000   —   (16 073)  
Gold Label Investments Proprietary Limited     29 400   184 714   (175 075)  
Kwikpay SA Proprietary Limited     22 500   —   —  
Matragon Proprietary Limited**     *   —   —  
The Post Paid Company Proprietary Limited**     *   —   —  
The Prepaid Company Proprietary Limited**     2 150 214   236 794   —  
Transaction Junction Proprietary Limited     4 200   —      
Uninex Proprietary Limited     *   976   —  
Velociti Proprietary Limited     7 185   3 005   —  
Ventury Group Proprietary Limited**     98 406   —   —  
Virtual Voucher Proprietary Limited**     44 784   —   —  
      3 289 520   452 262   (441 563)  
* Less than R1 000.
** These investments have been pledged as security to Investec Bank Limited in terms of the facility.
For details on percentage held, country of incorporation and issued shares, refer to note 34 in the
Group notes. Refer to notes 15 and 21 for details on impairments.
1 These loans bear interest at prime plus 2% and have no fixed terms of repayment. All other loans are interest-free.
2 In the prior year the loan to BLT USA Inc. was capitalised.

In the current year TicketPros Proprietary Limited, Blue Label Engage Proprietary Limited, Panacea Mobile Proprietary Limited and Africa Prepaid Services Nigeria Limited were acquired. Refer to note 28 in the Group notes for details of these acquisitions.

In the prior year Activi Technology Services Proprietary Limited sold its 100% investment in Activi Deployment Services Proprietary Limited and its 60% investment in Transaction Junction Proprietary Limited to Blue Label Telecoms Limited on loan account. In the prior year, Matragon Proprietary Limited distributed its 100% investment in Blue Label Distribution Proprietary Limited to Blue Label Telecoms Limited.
6.2 Investments in joint ventures and related loans
        2013
R’000		   2012
R’000		  
Shares as at the beginning of the year       26 652   27 128  
Acquisition of joint venture       138 174   —  
Disposal – Demtrade 11 Proprietary Limited       —   (476)  
Shares as at the end of the year       164 826   26 652  
Loans at the beginning of the year       27 829   1 485  
Loans repaid by joint ventures       —   (1 228)  
Loan granted to joint venture capitalised       (112 822)   —  
Loans granted to joint venture       84 993   27 572  
Loans at the end of the year       —   27 829  
Closing net book value       164 826   54 481  

          Date
acquired
   Country of
incorporation
   Percentage
interest
held
  
Blue Label Mexico S.A. de C.V.     Joint venture   23 Feb 2011   Mexico   40  
Blue Label Mexico S.A. de C.V.*     Joint venture   1 Sep 2012   Mexico   5  

     
Assets
R’000
   Liabilities
R’000
   Revenues
R’000
   Loss
R’000
  
2013                    
Blue Label Mexico S.A. de C.V.     349 286   73 551   1 742 863   (113 155)  
2012                    
Blue Label Mexico S.A. de C.V.*     129 090   79 988   859 592   (59 155)  
  * On 1 September 2012 Blue Label Telecoms increased its shareholding in Blue Label Mexico S.A. de C.V. (BLM) by 5% for a consideration of R21.1 million. A further capital contribution of R89.2 million was paid to BLM during the year. The loan balance at 31 May 2012 of R27.8 million was capitalised during the year.

NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS l NOTE 6