NOTES
1 . SHARES PURCHASED IN SENWES LIMITED
Agribel Holdings Limited ’ s shareholding in Senwes remained at 74,37 % during the period .
2 . CONTINGENT LIABILITIES
Claimants representing ex Suidwes customers issued summons against , Africum Commodities ( Pty ) Ltd (“ AC ”), for an amount of R64,7 million . AC has applied the proceeds from the sale of grain against debt of customer ( s ) but the Claimants claim that the proceeds must be repaid to the insolvent estate . AC denies any liability and the claim is being defended . AC has been advised that its defence ( s ) has good merits and the risk is the incurrence of legal costs .
Due to the nature of the contingent liability , no certainty exists with regards to payouts to be made and the financial effect , as well as the timing , cannot be determined and no reimbursements are receivable .
3 . NEW BUSINESS COMBINATIONS 3.1 SENWK ( Pty ) Ltd
During the period Senwes obtained an additional 50 % interest in SENWK ( Pty ) Ltd (“ SENWK ”), with effective date 1 May 2021 . This transaction constitutes a business combination achieved in stages ( joint venture to a fully owned subsidiary ) in accordance with IFRS 3 .
Fair value of assets acquired and liabilities assumed :
R ’ m
Provisional fair value of SENWK ’ s net tangible assets ( equity ) A ….……………..... 53 Share obtained ( control ) B …..………….…... 100 % Fair value of tangible net assets ( equity ) obtained C ( AxB )……..... 53
Consideration paid ( including provisional fair value of previously held equity interest )
Provisional goodwill ( previously held as a joint venture investment on group financial statements ) *
D …….……….….... 85
E ( D-C ) ...…… 32
* The net assets recognised in the 31 October 2021 interim financial statements are based on a provisional assessment of fair value , while the group finalises the fair value measurement of assets acquired and liabilities assumed . Assessment of further separately identifiable assets and / or liabilities is also in progress .
The provisional goodwill recognised is mainly due to the joint venture investment revaluation of R46 million recognised due to loss of control over a subsidiary on 1 May 2012 .
AGRIBEL HOLDINGS INTERIM RESULTS 31 OCTOBER 2021
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