AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
Suidwes IT Solutions 2 ( Pty ) Ltd (" SWITO 2 ") During the year , Africum Ltd acquired the remaining 51 % of SWITO 2 . The investment was previously held as an investment in associate with a 49 % shareholding held by Africum Ltd . This resulted in SWITO 2 being fully owned and consolidated in the Senwes Group . The effective date of the transaction was 30 April 2021 .
GROUP
Fair value of assets acquired and liabilities assumed : A ….………………........ ( 29 ) Trade and other receivables 1 Current assets , excluding trade and other receivables * Current liabilities * Other loans payable ( 30 ) Consideration paid 1 B …….……………......... *
Goodwill 2
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C =( B-A )……………...... |
29 |
* Amounts are less than R0,5 million . |
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1
The acquisition was funded from operating cash flows .
2
Goodwill originated mainly due to the negative net asset value assumed . Refer to note 5 regarding subsequent measurement of goodwill .
R ' m
Since the acquisition date , no revenue or profit after tax were contributed to the consolidated statement of comprehensive income by SWITO 2 , whereas the revenue contributed by the company for the 12-month accounting period , as though the acquisition had been at the beginning of the annual reporting period , is R8 million . No profit would have been recorded for the 12-months ending 30 April 2021 .
Other transactions : During the year , Africum Ltd acquired the remaining shareholding in Africum Agripet ( Pty ) Ltd (" Agripet ") ( 40 %) from the non-controlling shareholder . The parties also agreed that simultaneous to and interdependent from the first mentioned transaction , Africum Ltd will sell its shareholding in Supreme Petfood ( Pty ) Ltd (" Supreme Pet ") to the same shareholder . The last mentioned transaction resulted in a disposal of a subsidiary and the derecognition of noncontrolling interest of R6 million . The effective date of these transactions were 28 February 2021 .
During the year , Africum Ltd also acquired the remaining 1 % and 15 % non-controlling interest in Africum Commodities ( Pty ) Ltd and Network Embedded Technologies ( Pty ) Ltd ( NWET ) respectively , as well as a 2 % non-controlling interest in NviroTek Laboratories ( Pty ) Ltd . The effective date of the transactions was 30 April 2021 .
KLK Landbou Ltd (" KLK "). During the year the board of directors of Carpe Diem Raisins ( Pty ) Ltd ( subsidiary of (" KLK ")) decided to purchase the remaining 37,5 % of the non-controlling interest of Cool Raisins ( Pty ) Ltd for R17 million , the effective date being 1 March 2020 . KLK exercised the option to purchase a further 30 % shareholding in Carpe Diem Raisins ( Pty ) Ltd from Van der Colff Beleggings ( Pty ) Ltd . The transaction became effective from August 2020 . After the transaction KLK holds 80 % of Carpe Diem Raisins Group . The transaction resulted in a change in ownership reserve of R7 million being recognised in the statement of changes in equity .
Agri Credit Solutions ( Pty ) Ltd (" ACS ") Senwes as the legal and beneficial owner of its credit division within Senwes Ltd , offering credit and finance solutions to its customers , disposed of its business to a separate legal entity ( Agri Credit Solutions ( Pty ) Ltd , formerly Suidwes Landbou ( Pty ) Ltd ) during the current financial year . ACS is fully owned by Suidwes Holdings ( Pty ) Ltd ( a fully owned subsidiary of Senwes Ltd ). This is therefore a common control transaction , and excluded from the scope of IFRS 3 . As a result , a book value approach has been applied for the transfer of assets and liabilities in exchange for a loan payable to Senwes . The effective date of this transaction was 1 December 2020 .
Agrifriend Equipment ( Pty ) Ltd (" Agrifriend ") During the year , the group entered into a transaction where Senwes Equipment ( Pty ) Ltd (" Senwes Equipment "), a fully owned subsidiary in the Senwes Group , transferred its operations and sold its net assets to Agrifriend . Agrifriend is also a fully owned subsidiary within the Senwes Group . The transaction was concluded as an asset-for-share transaction whereby Agrifriend issued shares to Senwes Equipment as consideration for the net assets received . Within the group this constitutes a common control transaction and no change in ownership occurred . The transaction was effective on 1 April 2021 .
Agribel Holdings Limited Reg nr : 1996 / 017629 / 06 AGRIBEL ANNUAL FINANCIAL REVIEW 2021
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