Brainworks sells GetBucks stake

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DIVERSIFIED investment holding company Brainworks has disposed part of its stake in GetBucks Microfinance to reduce its short term debt.
The disposal, which decreased Brainworks’ stake in Getbucks by about two percent to just under 30 percent, has generated $565 340,53 for the company.
The company announced in a statement that it had sold 18 596 910 GetBucks shares through its associate, Brainworks Capital Management.
“The board of directors of Brainworks hereby advises shareholders that it has, together with Brainworks Capital Management Private Ltd … entered into the following transactions for the disposal of its shares in GetBucks Microfinance Bank Ltd: The disposal of 16 343 731 ordinary shares in GetBucks at a price of $0,030 per GetBucks share to Stodaflo (Pty) Ltd … The disposal of 2 253 179 ordinary shares in GetBucks to Fodnort (Pty) Ltd at a price of $0,033299 per share,” read the statement.
The company said proceeds from the sale will be used to reduce its short term debt.
“The funds raised pursuant to the transactions will or have been applied towards reducing short term debt in the company. The transactions are aimed at improving the balance sheet and positioning it for growth going forward,” it said.
The effective date of the Stodaflo disposal was July 13, 2018 while the deal with Fodnort came into effect on July 16.
Stodaflo has assumed certain liabilities and obligations of Brainworks owed to GetBucks amounting to $490 311,92, in addition to the $0,030 per share paid to Brianworks.
GetBucks reported net profit after tax of $2,58 million for the six months ending December 31, 2017, and total net assets of $15,5 million as at the same date.
Brainworks, which is listed on the main board of the Johannesburg Stock Exchange, is a Mauritian registered investment holding company, with its investment base focused on the Zimbabwean hospitality, real estate, financial services and logistics sectors. The group has interests in African Sun, Dawn Properties, GetBucks, Getcash, GetSure, MyBucks and FML Logistics.
The board of Brainworks believes that there are strong prospects for local industrial and economic growth going forward and that the company is well positioned for growth over the medium term and expects to achieve this by focusing on core investments in consumer facing, sustainable cash generative equity stakes.
Meanwhile, Brainworks shareholders have approved the disposal of 163 769 298 GetBucks Disposal Shares by Brainworks Capital Management and GetSure and a further disposal of a maximum of 7 349 428 GetBucks Interest Shares to the group’s other associates. After the disposal of their respective shares in GetBucks, Brainworks Capital Management and GetSure will hold 6,58 percent and 9,59 percent of the issued shares in GetBucks respectively.
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