Starafrica sells Bluestar for $1,5m

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Starafrica Corporation has sold Bluestar Logistics to a local private company for $1,5 million. The purchase price comprised a deposit of $200 000 with the balance being paid in equal instalments over a period of 13 months, Starafrica said in a statement yesterday. Bluestar’s profitability was negatively affected by low business volumes from Goldstar Sugar Harare, a sugar refining division of Starafrica and the impasse between platinum producers and Government on taxrelated issues, the company said in December.

“In terms of the loan agreement between PTA Bank and Starafrica, the purchaser paid 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 Starafrica corporation,” said the company.

However, the company is still looking for buyers of its 33 percent shareholding in Tongaat Hullet Botswana. The disposals are part of the scheme of arrangement entered into with creditors and lenders in August 2013.

The company did not provided an update on operations. But in December last year, it said the integration of its sugar refinery, Goldstar Sugar in Harare would be completed during this quarter.

This will see the company doubling daily capacity to 600 tonnes. Currently, the company is producing 300 tonnes per day, enough to meet demand from retail and industrial consumers.

The group’s revenue increased to $6,6 million in six months to September last year from $2,8 million in the previous comparable period due to increase in sugar sales,” Starafrica said.

Loss for the period was $5,2 million from $3,1 million. The group’s total assets stood at $37 million against total liabilities of about $73,5 million. Short-term loans and borrowings stood at $36,7 million, up from $31,9 million while other current liabilities increased to $28,3 million from $25,4 million. Long term loans and borrowings declined to $6,3 million from $9,4 million.

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