Notes to the annual financial statements
for the year ended 31 December 2006
| « Note 28 (notes to the cash flow statement) | Note 30 (financial instruments) » | ||
29. |
BUSINESS COMBINATION |
||
| On 1 November 2006, the group acquired 100% of the issued share capital of Eyesizwe Coal (Pty) Limited, which is included in the coal business segment. The acquired business contributed revenues of R329 million and operating profits of R7 million to the group for the period from 1 November 2006 to 31 December 2006. If the date of acquisition was 1 January 2006 the revenue contribution would have been R1 880 million and the net operating profit R27 million. |
|||
Rm |
|||
| Details of assets acquired are as follows: | |||
| Purchase consideration: | |||
| – cash paid on acquisition | 1 607 |
||
| – fair value of assets acquired | (1 607) |
||
| Goodwill | |||
| The assets and liabilities arising from the acquisition are as follows: | |||
| – cash and cash equivalents | 62 |
||
| – property, plant and equipment | 2 026 |
||
| – financial assets | 34 |
||
| – investments | 42 |
||
| – inventories | 53 |
||
| – trade and other receivables | 243 |
||
| – trade and other payables | (222) |
||
| – interest-bearing borrowings | (120) |
||
| – non-current provisions | (68) |
||
| – Receiver of revenue | (13) |
||
| – deferred taxation | (430) |
||
| – fair value of net assets | 1 607 |
||
| Total purchase consideration | (1 607) |
||
| – Less: cash and cash equivalents in subsidiary acquired | 62 |
||
| Cash outflow on acquisition of subsidiary (refer to cash flow statement) | (1 545) |
||
Online Annual Report by