CONGLOMERATE starafricacorporation has disposed its logistics unit Bluestar Logistics (BSL) to a local private firm for $1,5 million with effect from February 5, the company has said.
BY BUSINESS REPORTER
The purchase prices comprised a deposit of $200 000 with the balance being paid in equal instalments over a period of 13 months, the company said in an update to scheme members.
“In terms of the loan agreement between PTA Bank and Star Africa, the purchaser paid the deposit, and will pay the balance of the purchase price directly to PTA Bank as part of settlement of the debt owed to PTA Bank by Star Africa,” it said.
It said BSL was sold in line with a resolution made by shareholders at a general meeting on July 19, 2013 “to the effect that the business may be sold at a price determined by the directors of the company to the best value and on such terms and conditions as directors may deem fit”.
BSL commenced operations as a department primarily involved in the transportation of sugar from the refineries into the market.
In its financial results for the six months ended September 30, starafricacorporation said BSL’s business profit performance was adversely affected by low business volumes from Gold Star Sugar Harare and the impasse resulted in Bluestar not moving products for its customers for two months.
The group widened its loss to $5,3 million for the half year-ended September 2015 from $3,7 million in the same period last year despite an increase in revenue as costs increased during the period.
Other than suffering an impairment loss of $87 654 and restructuring costs of $394 464, the company saw an increase in depreciation and net finance costs.
Depreciation grew to $666 464 from $344 915 recorded last year. Net finance costs were at $2 556 756 from $2 236 382.
In a statement accompanying the group’s financial results, board chairperson Joe Mutizwa said the six months under review were characterised by an adverse operating environment which was compounded by challenges associated with a contracting economy, liquidity constraints and interrupted supply of utilities.