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Johannesburg - Blue Label Telecoms [JSE:BLU] said it will buy
back the nearly 12% of its shares currently held by Microsoft Corporation at a
discount, as the US software firm cashes out of its stake in the company.
Blue Label, a distributor of prepaid air time for mobile phones, said it would buy back 91.9 million shares currently held by Microsoft for R4.25 per share.
Blue Label said it plans to cancel the stock, which
represents about 12% of its total shares.
Microsoft paid R6.75 a share for its stake in 2007, the South African company said, as part of a strategic relationship. It was not immediately clear whether Microsoft would retain any holding in the South African company, or whether the two firms would continue their cooperation.
Under the terms of their 2007 agreement, Microsoft would support Blue Label's drive to expand its global presence, while using the South African firm's distribution network to deliver products and services.
