Cambria Africa has confirmed the completion of its deal to sell Blueberry Group, which indirectly holds Cambria’s interest in commercial and security printing business Celsys, for a nominal US$1 fee.
Last month Cambria said it had decided other investors are in a better position to make necessary investments in Celsys.
This comes as Cambria focuses its efforts on the expansion of its other business units, namely Millchem and Payserv, which are being expanded into new markets in Africa.
The Blueberry deal removes the loss making associate from the Cambria portfolio and allows the company to further focus its investment on the expansion of the Millchem and Payserv units, which are increasingly seen as primary businesses.
The transaction excludes the Cambria owned Southerton properties from which Celsys operates, and the company will continue to receive rental income from this asset.
Cambria’s indirect 60% stake in the Celsys business is being bought by an investor group led by Zimbabwean Lovemore Chihota.
Combined losses generated by the Blueberry International vehicle and its various subsidiaries, including Celsys, were US$2.7 million during the 2012 financial year, affected by US$1.3m in write offs. This was, however, a dramatic improvement over the financial year 2011 results.
The new owners of Blueberry are expected to launch a significant investment programme in the Celsys business, which Cambria believes will help the firm move into profitability.
The Blueberry transaction comes after an already busy period for Cambria that saw it close a US$2m convertible financing in its Payserv investment and a US$2.7 million settlement with its former controlling shareholder Lonrho. – Proactive Investors