Acquisition of subsidiaries
Shares in the following subsidiaries were acquired during 2008 post listing:
| |
|
Effective date of |
|
|
| |
|
acquisition |
|
% acquired |
| Subsidiary |
|
|
|
|
| CNS Call Centre |
|
1 January 2008 |
|
80% |
| Content Connect Africa |
|
23 January 2008 |
|
100% |
| Little River 181 |
|
1 March 2008 |
|
100% |
| POS Control Services |
|
1 March 2008 |
|
52% |
| |
|
|
|
|
| Details of the total net assets acquired and the resulting goodwill as at acquisition are as follows: |
|
|
|
Total |
| |
|
|
|
R’000 |
| Total purchase consideration |
|
|
|
131,355 |
| Fair value of net assets acquired |
|
|
|
42,124 |
| Goodwill |
|
|
|
89,231 |
| The assets and liabilities acquired through the acquisitions are as follows: |
|
|
|
|
| |
|
|
|
Acquirer’s |
| |
|
Fair value |
|
carrying |
| |
|
at |
|
amount on |
| |
|
acquisition |
|
acquisition |
| |
|
date |
|
date |
| |
|
R’000 |
|
R’000 |
| Cash and cash equivalents |
|
6,145 |
|
6,145 |
| Property, plant and equipment |
|
1,385 |
|
1,385 |
| Intangible assets |
|
46,291 |
|
248 |
| Goodwill |
|
5,488 |
|
5,488 |
| Receivables |
|
2,984 |
|
2,984 |
| Deferred tax |
|
(12,891) |
|
– |
| Borrowings |
|
(37) |
|
(37) |
| Payables |
|
(5,817) |
|
(5,817) |
| Fair value of subsidiaries acquired |
|
43,548 |
|
10,396 |
| Minority interests |
|
(1,424) |
|
|
| Fair value of net assets acquired |
|
42,124 |
|
|
| Cash and cash equivalents in subsidiary acquired |
|
|
|
6,145 |
| Purchase consideration |
|
|
|
(131,355) |
| Net cash flow on acquisition |
|
|
|
(125,210) |
|
