PDF 25 MB - Sun International | Investor Centre
PDF 25 MB - Sun International | Investor Centre
PDF 25 MB - Sun International | Investor Centre
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for the year ended 30 June<br />
28. CASH FLOW INFORMATION (continued)<br />
28.5 Acquisition of TCN<br />
On 26 May 2010, the group increased its shareholding from a 29% to 49% interest in TCN. This is<br />
an established business located in Lagos, Nigeria. The 29% interest in the company was accounted<br />
for as an associate. The entity was acquired as an effective entry into the Lagos leisure and gaming<br />
market. De facto control of the entity was obtained as a result of the increased shareholding in and<br />
management contract, with the company. Details of the fair values of assets and liabilities acquired<br />
and goodwill are as follows:<br />
NOTES TO THE GROUP FINANCIAL STATEMENTS continued<br />
Property, plant and equipment (note 14) (798)<br />
Inventory (2)<br />
Accounts receivable (<strong>25</strong>)<br />
Cash and cash equivalents (65)<br />
Deferred tax 13<br />
Current borrowings 368<br />
Accounts payable and accruals 76<br />
Net assets (433)<br />
Minorities’ interests (51%) 219<br />
Net assets acquired (214)<br />
Previously held associate at fair value 93<br />
Consideration settled in cash (121)<br />
Cash and cash equivalents in TCN 65<br />
Cash outflow (56)<br />
The Federal Palace in Nigeria generated revenue of R95 million for the year to 30 June 2010 and<br />
incurred a loss of R20 million which would have resulted in the group revenue being R7 881 million<br />
and profit for the year being R646 million.<br />
Included in the group results is revenue of R11 million and operating profit of R2 million from the<br />
date of consolidation.<br />
The minorities’ interests is based on the proportionate share of the net assets in the acquired entity.<br />
Due to the completion of the transaction being 26 May 2010, provisional purchase price accounting<br />
has been performed. The valuation of the land and buildings is in the process of being determined<br />
and will be finalised during the next financial period.<br />
28.6 Net decrease in borrowings<br />
Increase in borrowings 337 990<br />
Decrease in borrowings (481) (117)<br />
Acquisition of SFIR – (518)<br />
Acquisition of TCN (<strong>25</strong>8) –<br />
Imputed interest (18) (19)<br />
Decrease in short term banking facilities (31) (426)<br />
2010<br />
Rm<br />
2009<br />
Rm<br />
(451) (90)<br />
28.7 Interest paid<br />
Interest expense (566) (719)<br />
Imputed interest on loans payable 18 19<br />
Fair value of derivative financial instruments (8) –<br />
Non cash transfer from hedging reserve 23 8<br />
(533) (692)<br />
179
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