6.2 GROUP INTERESTS
6.2.1 Corporate transactions
KLK Landbou Ltd
During the period Senwes acquired a 57,44% interest in KLK Landbou Ltd (“KLK”), which operates as a group of
companies in the agricultural sector, with the effective date being 1 July 2019.
Refer to note 6.3.3 for a description of KLK’s operations.
GROUP
Fair value of assets acquired and liabilities assumed: 1 A….………………..... 424
Non-current assets, excluding property, plant and equipment and deferred tax 29
Property, plant and equipment 324
Deffered tax asset 13
Inventory 425
Trade and other receivables 166
Cash and cash equivalents 54
Trade payables (322)
Bank overdraft (52)
Current financial liabilities, excluding trade payables and bank overdraft (4)
Non-current liabilities (101)
Non-controlling interest (108)
Percentage share interest obtained B…..……………….... 57,44%
Fair value of net assets (equity) obtained C=(AxB)……..… 243
Consideration paid 2 D…….……………..... 187
Bargain purchase 3 E=(C-D)……….. 56
Non-controlling interest recognised 4 180
1
The amounts recognised at acquisition date for each major class of assets acquired and liabilities assumed.
2
The acquisition was funded from normal operating cash flows (R153 million) and the issue of 3 066 207 normal shares
(R34 million) which amount to a total investment of R187 million.
3
The bargain purchase is included in the “Gain on bargain purchase of subsidiary” line item in the statement of comprehensive
income. The transaction resulted in a gain mainly due to significant fair value adjustments on properties
recognised at acquisition date.
4
The non-controlling interest was determined using the proportionate method.
R'm
Since acquisition date, revenue of R2 135 million and a profit after tax of R33 million were contributed to the consolidated
statement of comprehensive income by KLK, 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
R2 651 million and R43 million, respectively.
Other transactions:
During the year, and subsequent to the acquisition of KLK, the board of directors of Carpe Diem Raisins (Pty) Ltd (a subsidiary
of KLK) decided to purchase the remaining 37,5% of the non-controlling interest of Cool Raisins (Pty) Ltd for R17
million. KLK exercised the option to purchase a further 30,0% shareholding in Carpe Diem Raisins (Pty) Ltd from Van der
Colff Beleggings (Pty) Ltd. The transaction price was agreed between the parties on 28 May 2020 and the transaction is
subject to Competition Commission approval.
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SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 Senwesbel Limited Reg no: 1996/017629/06