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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
OPERATING
PERFORMANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
187
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
26.
BUSINESS COMBINATIONS (continued)
26.1 Acquisition of subsidiary (continued)
Blue Label
Engage
Proprietary
Limited
R’000
Panacea
Mobile
Proprietary
Limited
R’000
TicketPros
Proprietary
Limited
R’000
Total
R’000
Cash and cash equivalents
14
2 963
14 153
17 130
Property, plant and equipment
13
113
452
578
Intangible assets*
— 5 263
5 368
10 631
Inventories
—
—
994
994
Receivables
110
2 145
1 210
3 465
Current tax liabilities
— (1 015)
(422)
(1 437)
Borrowings
(114)
—
— (114)
Deferred tax*
— (1 474)
(1 260)
(2 734)
Payables
(39)
(2 206)
(12 336)
(14 581)
Fair value of subsidiaries acquired
(16)
5 789
8 159
13 932
Non-controlling interests
8
(2 837)
(3 263)
(6 092)
Fair value of net assets acquired
(8)
2 952
4 896
7 840
Goodwill
2 743
6 882
5 104
14 729
Total purchase consideration
2 735
9 834
10 000
22 569
Contingent consideration
(335)
(2 334)
— (2 669)
Settled in cash
2 400
7 500
10 000
19 900
Less:
Cash and cash equivalents in
subsidiary
(14)
(2 963)
(14 153)
(17 130)
Cash flow on acquisition
2 386
4 537
(4 153)
2 770
* Included in additions in note 5 is R5.3 million of software and R4.5 million of customer relationships which relate to the
purchase price allocations performed for Panacea Mobile Proprietary Limited and TicketPros Proprietary Limited respectively
in terms of IFRS 3(R) –
Business Combinations
. Deferred tax to the value of R1.5 million and R1.3 million respectively was
raised on recognition of these intangible assets.