Blue Label Telecoms plans to repurchase its shares from Microsoft.
Microsoft bought the 91,85-million share for R6.75 per share when Blue Label listed in 2007. Blue Label now wants to buy them back for R4.25 per share.
Blue Label says the repurchase is an efficient use of excess cash and also avoids a potential overhang of the Microsoft shares in the market.
In a related announcement today, Blue Label says that, in compliance with paragraph 3.59 of the Listings Requirements and as a consequence of the share buy-back agreement, Microsoft’s Mteto Nyati has tendered his resignation from the Blue Label board of directors with effect from 5 October 2011.