Agribel Annual Financial Review | Page 29

AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
Grainovation ( Pty ) Ltd (" Grainovation ")
Senwes acquired an additional 50 % equity interest in Grainovation , which brings the investment to 100 %. Grainovation is a soft commodity logistics
company . The acquisition amounted to R28 million , and was funded from normal operating cash flows . The effective date of acquisition was 1 November
2019 . This transaction constitutes a business combination achieved in stages .
GROUP
R ' m
Fair value of assets acquired and liabilities assumed 1 :
A ….………………..........
53
Property , plant and equipment
84
Inventory
1
Trade and other receivables
24
Trade and other payables
( 58 )
Deferred tax liability
( 9 )
Loans receivable
11
Consideration paid 2
B …….…………….........
54
Goodwill 3
C =( B-A )……………...
1
1
The amounts recognised as of the acquisition date for each major class of assets acquired and liabilities assumed .
2 The consideration paid consists of the acquisition date fair value of the equity interest in Grainovation held immediately before the acquisition date ( R26
million ), and the fair value of consideration paid relating to the additional 50 % equity interest obtained . A gain of R2 million was recognised as a result of
remeasuring to fair value the equity interest in Grainovation held before the business combination , and is included in the " share of ( loss )/ profit from joint
ventures and associate " line in the statement of comprehensive income .
3
Goodwill arose in respect of , inter alia , the high profitability of the acquired business and synergies expected to arise after the group ’ s acquisition of the
business .
Since acquisition date , and for the 2020 financial year , revenue of R28 million and a profit after tax of R5 million were contributed to the consolidated statement of comprehensive income by Grainovation , whereas the revenue and profit contributed by the company for the 12-month accounting period , as though the acquisition had been as of the beginning of the annual reporting period , are R66 million and R16 million , respectively .
Senwes Equipment ( Pty ) Ltd (" Senwes Equipment ") Senwes as the legal and beneficial owner of its equipment division within Senwes Ltd , offering mechanisation and maintenance solutions and the supply of whole goods , spares and workshop services to producers from 28 retail outlets and 17 mechanisation workshops , disposed of its business to a separate legal entity ( Senwes Equipment ( Pty ) Ltd ) during the current financial year . Senwes Equipment is fully owned by Senwes Equip 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 . The effective date of this transaction was 2 December 2019 .
6.2.2 . Group interest in subsidiaries GROUP *
2021
2020
Notes
Number of
Number of
shares in
Interest
shares in
Interest
issue
%
issue
%
JD Implemente ( Pty ) Ltd
6.3.1
1 000
50
1 000
50
KLK Landbou Ltd
6.3.3
17 175 331
57.7
17 175 331
57.7
Suidwes Holdings ( Pty ) Ltd 1
6.3.4
53 291 256
100
-
-
Hinterland Holdings ( Pty ) Ltd 2
50 000 000
100
-
100
Grainovation ( Pty ) Ltd
1 000
100
1 000
100
Senwes Equip Holdings ( Pty ) Ltd 3
100
100
100
100
Senwes Agrowth ( Pty ) Ltd 4
1 000
73.5
1 000
73.5
Senwes Capital ( Pty ) Ltd
11 054
100
11 054
100
Senwes Graanmakelaars ( Pty ) Ltd
100
100
100
100
Senwes Mauritius Ltd 5
240
100
240
100
Senwes Share Incentive Scheme Trust 6
16.2
-
100
-
100
* Relates to investments held by the company ' s immediate subsidiary , Senwes Ltd .
1 During the period Senwes acquired a 100 % interest in Suidwes Holdings ( Pty ) Ltd (" Suidwes "), which operates as a group of companies in the agricultural sector , with the effective date being 31 October 2020 . Refer to note 6.1 for further details . 2 During the period Senwes acquired an additional 50 % share interest in Hinterland Holdings ( Pty ) Ltd (" Hinterland "), which brings the investment
to 100 %, with the effective date being 1 October 2020 . Refer to note 6.2 for further details . 3 Senwes Equip Holdings ' share capital amounts to R100 only . 4 Senwes Agrowth ( Pty ) Ltd is the holding company of Tradevantage Grain ( Pty ) Ltd (" Tradevantage ") and consists of equity and an investment of
R100 . Thobo Trust holds a 26,5 % interest in Senwes Agrowth ( Pty ) Ltd . No non-controlling interest is accounted for as the trust is ring-fenced as a special
5
Senwes is in the process of deregistering the business of Senwes Mauritius . 6 Senwes Share Incentive Scheme Trust was established as a vehicle for the equity-settled share-based payment scheme . During the year 1 824
038 shares ( 2020 : 2 336 868 shares ) vested under the LTI scheme and 381 219 shares ( 2020 : 376 371 shares ) were repurchased from the participants of the scheme .
Agribel Holdings Limited Reg nr : 1996 / 017629 / 06 AGRIBEL ANNUAL FINANCIAL REVIEW 2021
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