Mvelaserve (MVS) subsidiary Mvelaserve Management Services has agreed to dispose of its interest in Contract Forwarding to its current CEO, Christopher Waterson.
The disposal amount is R2 and Contract Forwarding is required to repay R25 million of its shareholder loan prior to the implementation of the disposal, which will be borrowed from a third party funder.
In addition R10 million of the shareholder claim will not be sold, and any cash advances made by MMS to Contract Forwarding between the effective date and the implementation date will be repaid, the company said on Monday.
The company said the disposal follows a decision by Mvelaserve to focus on higher margin sectors.
The only condition precedent is the obtaining by the purchaser of the necessary funding which has been fulfilled, it added. - I-Net Bridge