NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1 . RELATED PARTY TRANSACTIONS 1.1 . Agribel Holdings Ltd (“ Agribel ”) Dividends of R120 million were paid to Agribel .
1.2 . Trade debtors - Directors Trade debtors comprise production credit accounts as well as other accounts which customers of the group qualify for . Credit extension , terms of repayment and interest rates in respect of loans are in line with company policy , which applies to all customers of the company .
R67,7 million ( October 2021 : R66,9 million ) was owed to the group by directors on the above-mentioned accounts as at 31 October 2022 , Rnil of which was in arrears ( October 2021 : R0,10m ). These accounts are covered by security held in terms of the credit policy .
2 . NEW BUSINESS COMBINATIONS 2.1 SFL Holdings GmbH (“ SFL ”) During the prior year , Senwes acquired the entire shareholding of SFL Holdings GmbH (“ SFL ”) in Germany . During the current year , Senwes provided the funding to SFL to acquire various shares and assets in agricultural businesses ( three John Deere dealerships , with six branches and sub-dealers ) in Germany .
As a result , Senwes gained control of the foreign companies and subsequently consolidated these companies and operations into the Senwes Group . The effective date of the foreign operations being consolidated into the Senwes Group is 1 July 2022 .
Preliminary fair value of assets acquired and liabilities assumed :
Preliminary fair value of assets acquired and liabilities assumed * |
A |
….……………........... |
370 |
Consideration paid |
B |
…..……………........ |
474 |
Preliminary goodwill recognised on 1 July 2022 |
C |
( B-A )……..……... |
104 |
* The net assets recognised in the 31 October 2022 interim financial statements are based on a preliminary 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 .
R`m
2.2 PE-BEE ( Pty ) Ltd (“ Protek ”) During the year the group increased its shareholding in Protek by purchasing an additional 9 % of the noncontrolling interest of Protek for R17 million , bringing the total shareholding to 60 %. The effective date of the transaction was 1 September 2022 . The transaction resulted in a change in ownership reserve of R10 million being recognised in the statement of changes in equity .
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