Blue Label in acquisition talks

Blue Label Telecoms has announced that it is considering an offer to be fully acquired.

The telecoms group, a distributor of pre-paid vouchers and other mobile services, said that it has received a “non-binding expression of interest” from an unnamed company for the acquisition of all its issued shares.

“The board is engaged in discussions with the party expressing interest and will update shareholders whenever appropriate,” the group said in a statement.

The company added, however, that the non-binding nature of the discussions does not constitute a firm intention to make any offer – and it is possible that no offer may result from the process.

“Accordingly, pending further announcements, shareholders are advised to exercise caution when dealing in Blue Label shares,” it said.

In August, Blue Label reported an 8% rise in its dividend per share to 27 cents for the period ended May 2014, on the back of a rise in profits.

Revenue improved to R19.4 billion, from R18.98 billion before, while group operating profit was up to R723 million, from R646 million in 2013.

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Blue Label in acquisition talks