AFRICAN DAWN ANNUAL REPORT 2018 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2018 The goodwill has been recognised because of synergies that will arise from including SME snapshot into the Group. The contribution SME snapshot would have contributed to the Group if acquired on 1 March 2017 is insignificant as it is in a start-up phase of development. 64 The effect on equity can be reconciled as follows: Group 2018 2017 R'000 R'000 Consideration at fair value (the acquisition was paid with 18 new shares of R1 in an existing subsidiary creating share premium) 352 15% of Net Asset Value of YueDiligence at acquisition given up 30 Outside shareholders share of liability 15% of SME Snapshot NAV 37 419 12. Subsidiary disposal Knife Capital Proprietary Limited disposal During August 2017 the board decided to restructure Knife Capital refer to Note 6. On 1 Sep 2017 the Group disposed of 100% of the equity interest in Knife Capital for R3,625million in cash. This included the 50% shareholding held by Knife Capital in Grindstone after restructure. The terms were outlined in the SENS issued on 25 August 2017. Net cashflow effect of disposal of Knife Capital Group Group Company 2018 2017 2018 2017 R'000 R'000 R'000 R'000 Property, plant and equipment (refer to Note 3) 44 - - Intangible assets on contracts (refer to Note 5) 2,006 - - Goodwill (refer to Note 4) 4,194 - - Deferred tax asset (refer to Note 7) 111 - - Trade and other receivables 588 - - Group loans transferred to third parties 329 - - Cash and cash equivalents 55 - - Share of SME Snapshot transferred to holding company (37) - - Trade and other payables (1,346) - - Carrying value of assets and liabilities disposed 5,944 - - Total assets sold less subsidiary acquired/ investment at carry value Knife Capital (5,944) - (4,043) 50% share of Grindstone equity transferred as part of sale - (1,891) Fair Value of associate restructured from subsidiary 1,893 - - Proceeds on sale of Knife Group 3,625 - 3,625 Loss on sale and change in control (426) - (2,309) Cash given up on sale (55) - - Cash received on sale 3,625 - 3,625 Cashflow movement on sale of Knife Capital 3,570 - 3,625 Refer Note 31
AFRICAN DAWN 2018 Annual Report
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