2.4 Disposal of subsidiaries
 
Date disposed   14 February 2020   30 April 2020  
% disposed   100%   85%  

 

3G Mobile 
R'000 
VAS 
operations 
R'000 
Total 
R'000 
 
Carrying/fair value of subsidiaries disposed of excluding goodwill (refer to note 11) 479 746  390 965  870 711   
Non-controlling interest  —  (156 654) (156 654)  
Carrying/fair value of net assets disposed of excluding goodwill  479 746  234 311  714 057   
Goodwill  25 731  234 560  260 291   
Carrying/fair value of net assets disposed of  505 477  468 871  974 348   
Gain/(loss) on disposal of subsidiaries (before FCTR release) 38 523  (91 530) (53 007)  
Total proceeds on disposal  544 000  377 341  921 341   
Less: Proceeds used to settle loans  —  44 626  44 626   
Less: Contingent consideration  —  (71 967) (71 967)  
Total proceeds on disposal received in cash  544 000  350 000  894 000   
Less: Cash and cash equivalents in subsidiaries  (85 304) (110 361) (195 665)  
Cash inflow on disposal  458 696  239 639  698 335   

Effective on 14 February 2020, Blue Label Telecoms Limited sold its 100% shareholding in 3G Mobile Proprietary Limited to a third party for an amount of R544 million. The profit on disposal, before tax and reclassification of foreign currency translation reserve of R57.8 million has been recognised in the statement of comprehensive income. 

Effective on 30 April 2020, Blue Label Telecoms Limited sold its 85% shareholding in Blue Label Mobile Proprietary Limited to a third party for an amount of R450 million. R350 million of the selling price of R450 million was received. The remaining R100 million plus interest thereon is contingent upon Cell C's solvency and liquidity being proven (refer to note 11). The loss on disposal, before tax and reclassification of foreign currency translation reserve of R22.5 million has been recognised in the statement of comprehensive income.