| |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED |
| for the year ended 30 June 2007 |
| |
All monetary amounts are expressed
in millions of Rands |
|
2007 |
Restated
2006 |
| 33. |
TAXATION PAID |
|
|
|
|
Taxation unpaid at beginning of the year |
|
(151,6) |
(93,6) |
|
Acquisition of businesses |
|
(14,2) |
(45,8) |
|
Disposal of businesses |
|
6,6 |
– |
|
Taxation charged to the income statement, excluding deferred taxation |
|
(350,1) |
(154,2) |
|
Taxation unpaid at end of year |
|
219,7 |
151,6 |
| |
|
|
(289,6) |
(142,0) |
| 34. |
ACQUISITION OF BUSINESSES |
|
|
|
|
Wade Walker (Proprietary) Limited and related companies |
|
|
|
|
On 10 January 2007 the Group acquired 80% of the ordinary share capital of
Wade Walker (Proprietary) Limited and related companies. The acquired businesses
contributed revenue of R99,0 million and attributable profit of R11,6 million during
this period. Had the business been acquired on 1 July 2006 the business would
have contributed a turnover of R184 million and an attributable profit of R22 million.
Details of the net assets acquired and the goodwill are as follows: |
|
|
|
|
Purchase consideration: |
|
|
|
|
– |
cash paid |
|
(68,0) |
|
|
– |
direct costs relating to the acquisition |
|
(1,5) |
|
|
Total purchase consideration |
|
(69,5) |
|
| |
Fair value of net assets acquired |
|
12,5 |
|
| |
Goodwill (note 3) |
|
(57,0) |
|
|
The goodwill is attributable to the high profitability of the acquired businesses
and the significant synergies expected to arise after the acquisition. |
|
|
|
|
The net assets acquired and the goodwill arising, are as follows: |
|
|
|
| |
|
|
Acquiree’s
carrying value |
Fair value |
|
Cash balances in businesses |
|
(21,1) |
(21,1) |
|
Inventories |
|
(5,9) |
(5,9) |
|
Accounts receivable and contracts in progress |
|
(29,6) |
(29,6) |
|
Intangible assets |
|
(23,0) |
– |
|
Property, plant and equipment |
|
(2,8) |
(2,8) |
|
Accounts payable and other |
|
20,9 |
20,9 |
|
Current taxation liability |
|
7,8 |
7,8 |
|
Non-current liabilities |
|
1,7 |
1,7 |
|
Minority interest |
|
– |
10,7 |
| |
Contingent taxation liability |
|
– |
5,8 |
|
Net assets acquired |
|
(52,0) |
(12,5) |
|
Goodwill (note 3) |
|
|
(57,0) |
| |
Total consideration |
|
|
(69,5) |
|
Net cash outflow arising on acquisition: |
|
|
|
|
Cash consideration paid |
|
|
(69,5) |
| |
Cash balances acquired |
|
|
21,1 |
| |
|
|
|
(48,4) |
|
| |
| |
|
|
