Imbalie Beauty has agreed to sell its subsidiaries to iBloom
The sale comes after one of Imbalie’s subsidiaries was hit by the Covid-19 outbreak.
Imbalie Beauty has signed a written sale of shares and claims agreement with iBloom to sell all of its subsidiaries’ shares and claims for R7.63 million cash.
Dreamnails Beauty, Enjoy Beauty, Placecol Fresh Beauty, Imbalie Beauty Training Academy, and Placecol Skin Care Clinic are among the subsidiaries up for sale.
According to Imbalie, the sale is a related party transaction as defined by the JSE Listings Requirements, because 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.
Imbalie’s major shareholders include Holistics Remedies, SA Madiba Investments, Unihold Group, and Esna Colyn. The basis for the sale is that one of the group’s subsidiaries was affected by the Covid-19 outbreak and received a loan from 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 believes that the conduct of the subsidiaries’ businesses in a delisted environment would be more appropriate than its current operations, as the cost savings in a delisted environment would be substantial.
At the end of February 2021, the net asset value of the disposal assets was R29.9 million, and the losses attributable to the disposal assets were R9.4 million.
Imbalie has established an independent board of directors comprising Jack Phalane, Pumla Tladi, and Theo Schoeman, as required by the Companies Act and regulations.