Blue Label terminates acquisition talks

JSE-listed Blue Label Telecoms says it has terminated discussions with an unnamed company for the acquisition of all its issued shares.

The group, a distributor of pre-paid vouchers and other mobile services, said in October that it had received a “non-binding expression of interest” from a company to acquire it.

The company, which remains unnamed, was revealed through industry sources to be a global company based in the United States.

However, the talks have now been terminated.

“Blue Label considers that insufficient progress has been made in relation to the non-binding expression of interest received to merit shareholders remaining under cautionary,” it said.

Shareholders were no longer advised to exercise caution when dealing in the group’s shares.

Shares in Blue Label were up marginally in trade on Friday morning at R9.14, giving the group a market cap of R6.16 billion.

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 terminates acquisition talks