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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
continued
For the year ended 31 May 2016
105
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
2.
Group composition
continued
2.1 Investments in and loans to associates and joint ventures continued
Shares in associates and joint ventures acquired during the current year
Date acquired
Effective
percentage
Banosign Proprietary Limited
Joint venture
01-Apr-16
50.1
Oxigen Services India Private Limited
Associate 01-Mar-16
2.35
Blue Label Mexico S.A. de C.V.
Joint venture 01-Sep-15
0.92
The Group’s effective shareholding in OSI prior to March 2016 was 55.83%. Of this shareholding, 37.22% was
held by Gold Label Investments (GLI), a wholly owned subsidiary of the Group and 18.61% indirectly through the
Group’s 50% shareholding in 2DFine Holdings Mauritius. In March 2016, a rights issue was offered by OSI for
USD10.5 million. The Group exercised its rights for the entire amount through GLI congruent with 2DFine Holdings
Mauritius waiving its rights. The effect of this is that GLI’s shareholding has increased from 37.22% to 40.97% and its
indirect shareholding of 18.61% has been diluted to 17.21%. The latter has in turn resulted in a gain of R30 million
on dilution, being the Group’s share of the increased net asset value emanating from the rights issue. The Group’s
effective shareholding in OSI therefore increased by 2.35% to 58.18%. The amount paid for this was R159.4 million,
the difference of R8.3 million relates to foreign exchange differences.
In September 2015 BLT increased its holding by 0.92% to 47.56% in BLM for an amount of R42.5 million.
Shares in associates disposed of during the current year
Date
disposed
Effective
percentage
Forensic Intelligence Data Solutions Proprietary Limited
Associate 01-Dec-15
20.25
The Group disposed of Forensic Intelligence Data Solutions Proprietary Limited for a nominal value.
Blue Label Telecoms Limited has guaranteed 45% of the amount owed by BLM to Radiomovil Dipsa S.A. de C.V.
(trading as Telcel). At year-end there is no balance due to them by BLM.
There are no other contingent liabilities relating to the Group’s interest in joint ventures.
For details on related-party transactions, refer to note 8.
2.2 Disposal of subsidiary
Date disposed
30 October 2015
% disposed
100
Velociti
Proprietary
Limited
R’000
Carrying/fair value of subsidiary disposed of
17 216
Goodwill
3 169
Carrying/fair value of net assets disposed of
20 385
Loss on disposal of subsidiary
(3 885)
Total proceeds on disposal received in cash
16 500
Less:
Cash and cash equivalents in subsidiary
(3 281)
Cash inflow on disposal
13 219
On 30 October 2015, Blue Label Telecoms Limited sold its 100% shareholding in Velociti Proprietary Limited to a third
party for an amount of R16.5 million. The loss on disposal of R3.9 million has been recognised in the income statement.