Imbalie Beauty to sell subsidiaries to iBloom

IMBALIE Beauty has entered into a written sale of shares and claims agreement with iBloom to sell all of its shares and claims in its subsidiaries for a cash consideration of R7.63 million.

The group said yesterday it had entered the agreement on June 24. The subsidiaries that were up for disposal included Dreamnails Beauty, Enjoy Beauty, Placecol Fresh Beauty, Imbalie Beauty Training Academy and Placecol Skin Care Clinic.

Imbalie said the disposal was a related party transaction as contemplated in the JSE Listings Requirements as certain directors of iBloom were also directors of Imbalie Beauty.

“The major shareholders are also the holders and beneficial owners of all the shares in iBloom,” the group said.

The major shareholders in Imbalie are Holistics Remedies, SA Madiba Investments, Unihold Group and Esna Colyn.

The reason for the disposal is that one of the subsidiaries that is up for disposal was affected by the Covid-19 outbreak and was granted a loan.

“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 said it was of the opinion that the conduct of the subsidiaries’ businesses would be more suitable in a delisted environment, because the cost savings would be substantial.

The disposal was subject to a number of suspensive conditions, including that it must be concluded by the end of October and be approved by the regulatory authorities.