224 / 280
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
222
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
34.
SUBSEQUENT EVENTS
A final dividend of R182.1 million (27 cents per ordinary share) was declared for the year ended
31 May 2014, payable on Monday, 15 September 2014, to shareholders recorded in the register at the
close of business on Friday, 12 September 2014.
In August 2014, BLT completed a transaction in which it acquired 75% of Viamedia Proprietary Limited.
The purchase consideration is for an initial sum of R144.4 million plus additional amounts totalling up to
R103.1 million if warranted profits are achieved by Viamedia during the forthcoming 36 months. If the
warranted profits are not achieved, the above additional payments will be abated on a pro-rata basis.
A further R112.5 million or part thereof will be payable if stretched targets over and above the warranted
accumulated profits over the next three years are achieved. See note 26.3.
35.
LITIGATION UPDATE
In December 2008, Africa Prepaid Services Proprietary Limited (APS), a subsidiary of BLT, concluded a super
dealer agreement with Multi-Links Telecommunications Limited (MLT), a wholly owned subsidiary of Telkom,
at the time, in terms of which APS was appointed for a period of 10 years to market and distribute a range
of products and services for MLT in Nigeria (the agreement).
In 2009, APS ceded and assigned all its rights and obligations in terms of the agreement to Africa Prepaid
Services Nigeria Limited (APSN), a subsidiary of APS and BLT.
On 26 November 2010, APSN cancelled the agreement on the basis of MLT’s wrongful repudiation of the
agreement.
In June 2011, APSN launched arbitration proceedings in South Africa against MLT (the arbitration
proceedings). APSN claims payment of USD457 million against MLT and MLT has counterclaimed for payment
of the sum of USD123 million.