RFG Annual Report 2007 - Retail Food Group

06/07
Annual Report
56
29. Acquisition of businesses
Retail Food Group Annual Report
(i)
Names of businesses acquired Principal activity Date of
acquisition
RFG (NZ) Holding Limited (i)
bb’s New Zealand Limited
RFG (NZ) Limited
bb’s Coffee and Bake (NZ) Leasing Limited
Franchise system
management
Franchise system
management
Franchise system
management
Franchise system
management
Proportion of
shares acquired
(%)
Cost of
acquisition
$’000
23 March 2007 100 –
23 March 2007 100 –
23 March 2007 100 –
23 March 2007 100 –
On 23 March 2007, Regional Franchising Systems Pty Ltd (a wholly owned subsidiary of Retail Food Group Limited) acquired the entire shareholding of RFG Holdings (NZ) Limited. The
results of RFG Holdings (NZ) Limited and its controlled entities for the 3 months ending 30 June 2007 have been brought to account in the Group’s fi nancial statements in accordance with
Australian equivalents to International Financial Reporting Standards.
Net assets acquired
Book value
RFG Holdings (NZ) Limited
Fair value
adjustment
$’000
Fair value on
acquisition
$’000
Total fair value
on acquisition
$’000
$’000
Current assets
Cash at bank 166 – 166 166
Accrued income 21 – 21 21
GST recoverable 15 – 15 15
Prepaid income tax Installments 67 – 67 67
Total current assets 269 – 269 269
Non current assets
Intellectual property rights 1 – 1 1
Plant and equipment (net) 20 – 20 20
Furniture and fi ttings (net) 9 – 9 9
Total non current assets 30 – 30 30
Current liabilities
Franchisee deposits and bonds (69) – (69) (69)
Trade creditors (148) – (148) (148)
Total current liabilities (217) – (217) (217)
Total net assets acquired 82 – 82 82
Discount on acquisition
calculated as follows:
Consideration paid –
Net assets acquired 82
Discount on acquisition 83