194 / 280
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
192
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
26.
BUSINESS COMBINATIONS (continued)
26.3 Post-balance sheet acquisition of subsidiary
Subsequent to year-end, Blue Label Telecoms acquired 75% shareholding in Viamedia Proprietary Limited
(Viamedia).
The provisional fair value of the net assets acquired on acquisition date are:
Via
Media
Proprietary
Limited
R’000
Cash and cash equivalents
1 823
Property, plant and equipment
1 642
Intangible assets**
134 812
Loans receivable
830
Receivables
28 695
Current tax liabilities
(8 502)
Deferred tax**
(37 604)
Payables
(16 605)
Fair value of subsidiaries acquired
105 091
Non-controlling interests
(26 272)
Fair value of net assets acquired
78 819
Goodwill
150 356
Total purchase consideration
229 175
Contingent consideration
(84 799)
Settled in cash
144 376
Less:
Cash and cash equivalents in subsidiary
(1 823)
Cash flow on acquisition
142 553
** Included in intangible assets is R9.5 million in respect of customer relationships and R125 million in respect of a business
intelligence database which relate to the provisional purchase price allocations performed for Viamedia Proprietary Limited
in terms of IFRS 3(R) –
Business Combinations
. Deferred tax to the value of R37.7 million was raised on recognition of these
intangible assets.