Black economically empowered investment holding company Mvelaphanda Group (MVG) on Wednesday reported a R69.8 million headline loss for the year to the end of June‚ compared with a R208.4 million profit the previous year.
This translated into a diluted headline loss per share of 38.7 cents versus a loss of 32 cents per share previously.
In terms of the group’s cash preservation policy until its value unlocking strategy has been completed‚ no final dividend was declared for the year. However‚ preference shareholders received a preference dividend of 36.1 cents on 21 December 2011 for the six month period ended 31 December 2011 and an arrear preference dividend of 38.14 cents for the half-year ended 30 June 2011.
During the year‚ the group said it had continued with the implementation of its investment strategy to unlock value for Mvela Group shareholders. In January 2012‚ Blackstar acquired 28% of the company‚ becoming the single largest investor. In addition‚ two of Blackstar's executives were appointed to the Mvela Group Board and assumed the roles of interim Chief Executive Officer and interim Financial Director with a view to unbundle and continue realising the value of Mvela Group's remaining investment portfolio in the most efficient manner.
Prior to the Blackstar transaction‚ Mvela Group disposed of its 135 million ordinary shares in Vox Telecom for R61.9 million and 2.7 million ordinary shares in Life Healthcare for R49.7 million.
Post the Blackstar transaction‚ the Group has made significant progress in implementing its value unlocking strategy with the disposal of its remaining investments in Life Healthcare and Mvelaserve.
The group disposed of 7.8 million ordinary shares in Life Healthcare on the open market and effected its collar option transaction entered into in July 2011 with a financial institution in respect of 7m ordinary shares in Life Healthcare‚ realising a total cash consideration of R328.1m. The group disposed of its remaining interest in Mvelaserve for a total cash consideration of R93.7m.
In June 2012‚ Mvela Group announced its offer to acquire the entire issued ordinary share capital of Avusa as well as the renaming of Avusa to Times Media Group Limited (TMG) and the group's intention to unbundle all its shares in TMG to its shareholders.
The transaction was approved by shareholders in August 2012. Mvela Group shareholders will now have direct exposure to Avusa through TMG. The transaction provides shareholders with the unique opportunity to be invested in one of South Africa's leading media entertainment companies alongside a new CEO and management team and is part of the group's strategy to further unlock value for its shareholders.
The group has also implemented a series of cost cutting initiatives‚ including rationalising its operations and sub-letting of its premises.
Following the unbundling of TMG to Mvela's shareholders‚ Mvela's remaining investments will comprise an effective 47.3% interest in Batho Bonke (which owns an effective 5.03% interest in Absa)‚ and an investment in Group Five. Both of these investments will be realised before the end of the next financial year.
Mvela Group has convened a general meeting in October 2012 to obtain shareholder approval to change its name to New Bond Capital Limited. This will avoid any confusion with other companies who are independent of Mvela Group but also incorporate the name Mvela‚ it says. - I-Net Bridge