Falcon Agricultural Equipment (Pty) Ltd
During the year Senwes acquired a 100% interest, by obtaining the assets and liabilities, in Falcon Agricultural
Equipment (Pty) Ltd (“Falcon”). Falcon operates as an agri-implement manufacturer, importer and retailer. The
acquisition amounted to R28 million plus fair value of operating capital on the effective date (R21 million). The
acquisition was funded from normal operating cash flows. The effective date of acquisition was 1 November 2019.
Senwes holds this investment through one of its wholly-owned subsidiaries, Senwes Equip Holdings (Pty) Ltd
(“Senwes Equip Holdings” previously known as Pricepro (Pty) Ltd). Senwes Equip Holdings serves as a holding
company in mechanisation investments in the group.
GROUP
Fair value of assets acquired and liabilities assumed: 1 A….………………..... 24
Property, plant and equipment 3
Inventory 22
Trade and other receivables 10
Trade and other payables (9)
Other liabilities (2)
Consideration paid B…..……………….... 49
Goodwill 2 C = (B - A)...... 25
1
The amounts recognised at the acquisition date for each major class of assets acquired and liabilities assumed.
2
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, revenue of R50 million and a profit after tax of R4 million were contributed to the consolidated
statement of comprehensive income by Falcon.
Grainovation (Pty) Ltd
Senwes acquired an additional 50% equity interest in Grainovation (Pty) Ltd (“Grainovation”), which brought 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 constituted a business combination achieved in stages.
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 24
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GROUP
Fair value of assets acquired and liabilities assumed: 1 A….………………..... 53
Property, plant and equipment 84
Inventory 1
Trade and other receivables 25
Cash and cash equivalents 11
Trade and other payables (23)
Deferred tax liability (9)
Borrowings (36)
Consideration paid 2 B…..……………….... 54
Goodwill 3 C = (B - A)...... 1
1
The amounts recognised at 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 the equity interest in Grainovation held
before the business combination to fair value, 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, 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 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 wholly-owned by Senwes Equip Holdings (Pty) Ltd (a wholly-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.
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