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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
Notes
to the Group annual financial statements
continued
For the year ended 31 May 2017
2.
Group composition
continued
2.2 Investments in and loans to venture capital associates and joint venture continued
Company
Associate
Oxigen
Services India
Private Limited
Associate
Oxigen
Online Services
Private Limited
Joint venture
2DFine Group
1
Principal activity
Airtime and
payment
solution provider
Online payment
solution provider
Investment
holding company
Country of incorporation
India
India
Mauritius
Total
2017
R’000
2017
R’000
2017
R’000
2017
R’000
Fair value at the beginning
of the year
—
—
—
—
Reclassification
230 103
(81 507)
(42 780)
105 816
Fair value adjustment
11 388
101 831
46 981
160 200
Capital contribution
21 166
2
4 368
—
25 534
Fair value at the
end of the year
262 657
24 692
4 201
291 550
Loans to venture capital
associates and joint
venture
Loans at the beginning
of the year
—
—
—
—
Reclassification
36 025
218 889
254 914
Loans granted
429
—
12 974
13 403
Unrealised foreign
exchange profit
(2 144)
—
(13 558)
(15 702)
Loans at the end of the
year
34 310
—
218 305
252 615
Closing fair value
296 967
24 692
222 506
544 165
1
2DFine Group consists of 2DFine Holdings Mauritius and 2DFine Investments Mauritius.
2
The Group’s effective shareholding in OSI prior to April 2017 was 58.18%. Of this shareholding, 40.96% was held by Gold Label
Investments (GLI), a wholly owned subsidiary of the Group and 17.21% indirectly through the Group’s 50% shareholding in
2DFine Holdings Mauritius. In April 2017, a rights issue was offered by OSI for USD1.5 million. The Group exercised its rights for
the entire amount through GLI congruent with 2DFine Holdings Mauritius waiving its rights. The effect of this is that GLI’s
shareholding has increased from 40.96% to 41.96% and its indirect shareholding of 17.21% has been diluted to 16.92%.
The Group’s effective shareholding in OSI therefore increased by 0.7% to 58.88%. The amount paid for this was R21.2 million.