SENWES ANNUAL FINANCIAL STATEMENTS 2022
36 . EVENTS AFTER THE REPORTING PERIOD
36.1 The acquisition of John Deere dealerships in Germany Senwes Ltd (" Senwes ") and its subsidiary Senwes Capital ( Pty ) Limited (“ Senwes Capital ”) acquired three John Deere dealerships and property in Germany for an aggregate purchase consideration of € 23,7 million which consideration is variable subject to the levels of operating capital and debt on the closing date of the acquisition . The acquisition is subject to the fulfilment of the suspensive conditions , before being capable of being implemented (“ the closing date ”). As soon as these conditions have been met and the acquisition implemented , a purchase price allocation (" PPA ") will be performed .
The acquisition is aligned to the Senwes strategic philosophy , specifically the strategic pillar of externalisation which brings further opportunities into alternative lower risk jurisdictions . A platform for growth will be created while increasing exposure to other major currencies and decreasing the exposure to the volatile rand .
The three dealerships , with six branches and sub-dealers , will be consolidated in one holding structure with the management and head office located at Sonnewalde , Germany , under the leadership of a local German and highly experienced management team .
36.2 Falcon and Staalmeester merger Senwes purchased the remaining shares in Staalmeester Agricultural Equipment ( Pty ) Ltd (" Staalmeester ") from the non-controlling shareholder on 1 May 2022 . Subsequently , Falcon Agricultural Equipment ( Pty ) Ltd (" Falcon ") acquired the total business operations of Staalmeester as effective from 1 May 2022 in terms of a disposal agreement . The consideration for the asset purchase was R59 million which included the value of the business and the net working capital as a going concern .
The consolidated business operations of both parties , which deals in the import and manufacturing of bespoke agricultural equipment , will lead to further unlocking of synergies within the group and avoid any possible duplication of services and expenses .
Except for the above , management is not aware of any events that has occurred from the statement of financial position date and up to the date of this report that require adjustment or disclosure in these annual financial statements .
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