ACQUISITIONS AND DISPOSALS OF INVESTMENTS IN SUBSIDIARIES AND JOINT VENTURES
Acquisitions that resulted in business combinations
Priamar SRL
| Acquirer |
|
Alliance Medical |
| Country of incorporation |
|
Italy |
| Acquisition date |
|
30 December 2019 |
| Percentage voting equity interest acquired |
|
100% |
| Primary reasons for business combination |
|
In line with Life Healthcare’s strategy to establish a sizeable
international business, and complements the Group’s
existing diagnostic services segment |
| Qualitative factors that make up goodwill recognised |
|
Attributable to expected synergies from combining the
acquired operations with the existing Alliance Medical
Group. |
| Contingent liabilities at acquisition |
|
None |
None of the goodwill recognised is expected to be deductible for income tax purposes.
Details of the fair value of net assets acquired and goodwill are as follows:
| |
Priamar
2020
R知 |
|
|
|
|
| Total purchase consideration |
(10) |
|
| Cash portion |
(10) |
|
| Fair value of net assets acquired |
(2) |
|
| Property, plant and equipment |
3 |
|
| Trade and other receivables |
1 |
|
| Cash and cash equivalents |
4 |
|
| Trade and other payables |
(10) |
|
|
|
|
| Goodwill |
(12) |
|
| Cash outflow to acquire business, net of cash acquired |
|
|
| Initial cash consideration |
10 |
|
| Less: Cash at acquisition |
(4) |
|
| |
6 |
|
| Impact on consolidated information from date of acquisition |
|
|
| Revenue |
18 |
|
| Net loss |
(3) |
|
| Impact on consolidated information if business combination took place on 1 October 2019 |
|
|
| Revenue |
25 |
|
| Net loss |
(2) |
|
| |
2020
R知 |
|
2019
R知 |
|
|
|
|
|
|
| Contingent consideration liabilities |
|
|
|
|
| Balance at 1 October |
543 |
|
534 |
|
| Arising on acquisition of subsidiaries |
– |
|
16 |
|
| Paid during the year |
(74) |
|
(79) |
|
| Fair value adjustment recognised in profit or loss |
37 |
|
(2) |
|
| Unwinding of contingent consideration (included as part of finance cost) |
66 |
|
44 |
|
| Effect of foreign currency movement |
70 |
|
30 |
|
| Balance at 30 September |
642 |
|
543 |
|
| Included under non-current liabilities |
631 |
|
506 |
|
| Included under current liabilities |
11 |
|
37 |
|
| |
642 |
|
543 |
|
Transactions with non-controlling interests
Increases and decreases in ownership interest in southern Africa
During the current and previous financial year, the Group had increases in its percentage shareholdings in some of its subsidiary companies.
| |
2020
R知 |
|
2019
R知 |
|
|
|
|
|
|
| Total purchase consideration |
(152) |
|
(125) |
|
| Cash portion |
(152) |
|
(125) |
|
| Carrying amount of non-controlling interest recognised |
44 |
|
57 |
|
| Carrying amount of non-controlling interest acquired |
44 |
|
57 |
|
|
|
|
|
|
| Excess of consideration paid recognised in the transactions with non-controlling interests reserve within equity |
108 |
|
68 |
|
| During the current and previous financial year, the Group disposed of marginal percentages of its holdings in subsidiary companies to non-controlling interest. |
|
|
|
|
| The Group still maintained control over the subsidiary entities after the decrease in ownership interest. |
|
|
|
|
| Total value of decrease in carrying amount of non-controlling interest |
(10) |
|
(13) |
|
| Transactions with non-controlling interest reserve |
– |
|
(8) |
|
| Proceeds on disposal of investments |
10 |
|
21 |
|
|