Imbalie Beauty has entered into a written sale of shares and claims agreement with iBloom to sell all of its shares and claims in its subsidiaries for a cash consideration of R7.63 million. Photo: File
IMBALIE Beauty has entered into a written sale of shares and claims agreement with iBloom to sell all of its shares and claims in its subsidiaries for a cash consideration of R7.63 million.
The group said yesterday that it had entered the agreement on June 24 and the subsidiaries that are up for disposal include Dreamnails Beauty, Enjoy Beauty, Placecol Fresh Beauty, Imbalie Beauty Training Academy and Placecol Skin Care Clinic.
Imbalie said the disposal is a related party transaction as contemplated in the JSE Listings Requirements as certain directors of iBloom are also directors of Imbalie Beauty.
“The major shareholders are also the holders and beneficial owners of all the shares in iBloom,” the group said.
The major shareholders in Imbalie consist of Holistics Remedies, SA Madiba Investments, Unihold Group and Esna Colyn. The rationale for the disposal is that one of the group’s subsidiaries that is up for disposal was impacted by the Covid-19 outbreak and it was granted a loan by the bank.
“Absa Bank had provided Placecol Fresh Beauty with a Covid-19 loan. One of the major conditions to the loan being that the company delists from the JSE or alternatively that the operating subsidiary company to which the Covid-19 loan was granted no longer forms part of the Imbalie Beauty group of companies,” the group said.
Imbalie said that it was of the opinion that the conduct of the subsidiaries’ businesses in a delisted environment would be more suitable than its current operations as the cost savings in a delisted environment would be substantial.
The disposal was subject to a number of suspensive conditions which included that it must be concluded by the end of October and it must meet all approvals of all regulatory authorities, including the JSE and the Takeover Regulation Panel.
However, the group said the disposal was a category 2 transaction in terms of the JSE Listings Requirements and does not require approval from its shareholders.
The net asset value of the assets of the disposal was R29.9m and the losses attributable to the assets of the disposal amounted to R9.4m at the end of February 2021.
Imbalie has constituted an independent board that consists of Jack Phalane, Pumla Tladi and Theo Schoeman as required in terms of the Companies Act and the regulations.
Imbalie shares closed unchanged at R0.03 on the JSE yesterday.
sandile.mchunu@inl.co.za
BUSINESS REPORT
Related Topics: