FY 2010 Annual Report - Part II - Orascom Development

ODH Annual Report 2010
32 OTHER CURRENT LIABILITIES
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33 TRADE AND OTHER PAYABLES
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CHF 2010 2009
Advances from customers (i) 74,670,548 97,915,958
Other credit balances 17,764,827 19,530,818
Accrued expenses (ii) 23,042,430 12,282,398
Deposits from others 11,847,541 11,633,322
Taxes payable (other than
income taxes)
8,564,823 8,014,097
Amounts due to shareholders (iii) 28,378,122 3,195,215
Due to management companies 2,010,104 1,858,684
166,278,395 154,430,492
CHF 2010 2009
Non-current trade payables 35,921,963 71,476,141
Current trade and other
payables
57,120,751 102,219,680
The trade and other payables were reduced by CHF 9,394,616
due to the sale of the former Garranah subsidiaries and by CHF
65,057,355 due to the disposal of the Joud Fund 4 and its
subsidiary Al-Aqaba Oasis for Housing Ltd (see note 34).
(i)
Advances from customers include amounts received (progress
payments) from buyers of real estate between the time of the
initial agreement and contractual completion. The decrease is
mainly related to the completion and delivery of some real
estate in Oman and Egypt.
(ii) Accrued expenses mainly include operating costs for the hotel
and town management activities.
(iii) Amounts due to shareholders include amounts owed to non
controlling shareholders for planed capital increases in
several subsidiaries in Oman and Egypt in the total of CHF
26 million (2009: CHF 1.88 million).
34 DISPOSAL OF SUBSIDIARIES
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On 18 May 2010, the Group signed a share sale and purchase
agreement to sell to the Garranah family a six percent stake in six
former subsidiaries (see note 18). Pursuant to this agreement, the
Group’s interest in these entities decreased from 51 to 45 percent
and the Group ceased control over these subsidiaries, but
retained significant influence at 31 December 2010.
On 30 June 2010, the Group sold the entire stake in the Joud
Fund 4 (including its subsidiary Al-Aqaba Oasis for Housing Ltd.),
former subsidiaries of the Group, as part of the Group’s sale of
all its interests in the Joud Funds 1, 2, 3 and 4 (see note 18).
34.1 Consideration received
2010
CHF
Garranah Group companies Joud Fund 4 Total
Consideration received in cash and cash equivalents - - -
Consideration received in kind 1,464,267 - 1,464,267
Deferred sales proceeds 10,558,070 30,156,135 40,714,205
12,022,337 30,156,135 42,178,472
Foreign currency translation adjustment (1,571,815) (4,052,855) (5,624,670)
Total consideration received 10,450,522 26,103,280 36,553,802
The total consideration for the sale of a six percent stake in the
former Garranah subsidiaries was agreed to be EGP 65,067,695
(equals CHF 12,022,337) and to be settled as follows:
– EGP 11,219,986 (equals CHF 1,802,042) in cash or in kind
within six months from the share purchase agreement
signature; and
– EGP 53,847,709 (equals CHF 10,220,295) by transferring
the ownership of 124,441 Parent Company's shares for a
total value of EGP 42,708,462 (equals CHF 8,106,066) and
694,900 Parent Company's EDRs for a total value of EGP
11,139,247 (equals CHF 2,114,229).
As the second part of the consideration gives the Group the right
to receive a fixed number of its own shares, it was recorded as an
equity instrument within equity (see note 27.7).
At 31 December 2010, the Group received 26,171 Parent
Company’s shares for a total value of CHF 1,464,247. These
shares have been recorded. Deferred sales proceeds of CHF
337,775 were recorded as other debit balances in other current
assets and the equity swap settlement reserve amounted to CHF
10,220,295 at 31 December 2010 (see note 27.7).
The total consideration for the sale of the Joud Fund 4 (including
its subsidiary Al-Aqaba Oasis for Housing Ltd.) was agreed to be
USD 28 million (equals CHF 26.1 million).
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