| Mon 12 Mar 2007, 15:04 | | BFS - Blue Consolidates SA Subsidiary and Associat |
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BFS
BFS
BFS - Blue Consolidates SA Subsidiary and Associated Companies
Blue Financial Services Limited
(Registration number 1996/006595/06)
(JSE Code: BFS & ISIN: ZAE000083655)
("BLUE" or "the Company")
BLUE CONSOLIDATES SA SUBSIDIARY AND ASSOCIATED COMPANIES
Shareholders are advised that Blue has reached agreements with the remaining
shareholders of Greenstart Homeloans (Proporietary) Limited ("Greenstart") on
5 March 2007, and the remaining shareholders of Blue Incremental Housing Finance
(Proporietary) Limited ("BIHF") on 20 February 2007, to acquire the remaining
shareholdings in these companies not already owned by Blue. The transactions
have been classified as small related party transactions in terms of the
Listings Requirements of the JSE Limited which requires the publication of the
information set out below.
Greenstart
Blue will increase its shareholding to 100% from 15% in Greenstart, which is a
provider of home loans to the value of between R20 000 to R250 000. Greenstart
obtains its funding from the National Housing Finance Corporation ("NHFC"), a
government agency established to facilitate mortgage backed lending for that
sector of the market the banks traditionally don`t operate in. To date
Greenstart has provided loans for its own account in excess of R50 million to
clients. Greenstart also manages other mortgage debtors` books on behalf of the
NHFC.
The vendors of the remaining shares in Greenstart are Wheatfield Investments 109
(Proprietary) Limited, Kingston Place Gesinstrust and RDS Gesinstrust and Yila
Investments (Pty) Ltd. The purchase consideration for the remaining 85% is
R9 750 000, inclusive of shareholders` loans, to be settled as to R7 750 000 in
cash and R2 000 000 by way of the issue of 717 174 shares in Blue to the vendors
at an issue price of 278,87 cents per share.
The net asset value of the 85% interest in Greenstart as at 1 March 2007 amounts
to R 197 367 and an attributable loss of R 835 619 for the period ended 28
February 2007. The acquisition of Greenstart will not have a significant effect
on the net and tangible net asset value per share, or the earning or headline
earnings per share of Blue.
The effective date of the acquisition is 15 March 2007 and is subject to the
following suspensive conditions:
- The approval of the NHFC; and
- Waiver by Yila Investments of its pre-emptive rights to the shares in
Greenstart.
BIHF
Blue will buy the remaining 12% shareholding in BIHF, which offers finance for
the purchasing of land, the connection of utilities and home improvements.
The remaining vendor of BIHF is Mr. L Ntshona. The purchase consideration for
the remaining 12% in BIHF amounts to R320 000, to be settled by way of the issue
of 100 000 shares in Blue to the vendor, at an issue price of 320 cents per
share.
The net asset value of the 12% interest in BIHF as at 1 March 2007 amounts to
R238 730 and an attributable profit of R 45 710 for the period ended 28 February
2007. The acquisition of BIHF will not have a significant effect on the net and
tangible net asset value per share, or the earning or headline earnings per
share of Blue.
The effective date of the acquisition is 1 March 2007 and there are no
outstanding conditions.
Rationale
In order to streamline the management and operation of its South African
subsidiaries and associates, Blue a pan-African micro-financier, will
consolidate its local subsidiaries and associated companies into its South
African operating company.
By acquiring 100% of these subsidiaries and associated companies, it will be
more practical for Blue to combine the management and operations of these
services. This is difficult with multiple shareholders.
Blue Cell (Proprietary) Limited
The last partially held subsidiary, Blue Cell, a cellular solutions provider
that markets cell-phone contract packages and related technology solutions to
Blue clients, will be liquidated. At 66.6%, Blue is a majority shareholder in
Blue Cell, and due to irreconcilable differences with the other shareholder, has
made this decision to liquidate. Blue will meet its obligations with existing
clients and ensure that once their contracts have come to an end, they have the
option to renew their contracts with their service provider. In addition, Blue
will take care of Blue Cell`s obligations with creditors.
The liquidation of Blue Cell will not have a significant effect on the net and
tangible net asset value per share, or the earning or headline earnings per
share of Blue.
Pretoria
12 March 2007
DESIGNATED ADVISOR:
EXCHANGE SPONSORS (PTY) LIMITED
Date: 12/03/2007 15:04:46 Produced by the JSE SENS Department.
