Download our latest Annual Report - Bakkavor

BAKKAVOR ANNUAL REPORT AND ACCOUNTS 2012
notes to the consolidated financial statements
continued
32
The net effect of the transaction was as follows:
£m
Carrying value of 35% investment in English Village Salads 0.3
Cost of additional 35% investment in English Village Salads –
Amount recognised within equity attributable to equity holders of the parent 0.3
ACQUISITION OF BUSINESSES
On 31 March 2012 the Group acquired the remaining 35% of English Village Salads Limited to increase the Group’s ownership to 100% for a total
cash consideration of £40,000, prior to the closure of the business. This transaction has been accounted for as an equity transaction as the Group has
increased its stake in an existing subsidiary without any changes in control.
2011
On 21 December 2011 the Group acquired 52% of Gastro Primo Limited in Hong Kong, to increase its ownership to 100%, for a cash consideration
of US$1.0 million (£0.6 million) and deferred consideration of US$0.4 million (£0.3 million). Gastro Primo held £0.4 million of cash at the date of
acquisition. This has resulted in goodwill of £1.2 million being recognised and also a loss on disposal of an associate of £1.6 million being recorded in
the income statement.
The net effect of the acquisition was as follows:
£m
Fair value of 100% of Gastro Primo 1.7
Book value and fair value of net assets acquired (0.5)
Goodwill on acquisition 1.2
The loss on disposal of an associate was as follows:
£m
Carrying value of original 48% investment in Gastro Primo 2.4
Fair value of 48% investment in Gastro Primo 0.8
Loss on disposal of an associate (1.6)
On 3 November 2011 the Group acquired the remaining 20% of Bakkavor China Limited that it did not own for a cash consideration of US$30,000,
which resulted in the recognition of £0.8 million negative goodwill. This negative goodwill was recognised in the income statement.
PAGE 93 VIEW THE FULL REPORT AT ANNUALREPORT12.BAKKAVOR.COM