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Annexure A - new business combinations

            Book value of interest  
            Shares at cost less
impairments
Indebtedness less
impairments
 
           
Company Nature of
business
Place of
incorporation
Interest
owned
directly or
indirectly
(%)
Ordinary
shares in
issue
  2012
Rm
2011
Rm
2012
Rm
2011
Rm
 
Imperial Holdings International Cooperation U.A. Note 2 Netherlands 100     2 176 1 376      
Imperial Group (Pty) Limited Note 3 South Africa 100 165   1 400 1 400 1 357 1 449  
Associated Motor Holdings (Pty) Limited Note 4 South Africa 90 500 000   46 46      
Regent Insurance Company Limited Insurance South Africa 100 2 939 800   456 456      
Regent Life Assurance Company Limited Life insurance South Africa 100 2 125 000   145 145      
Imperial Capital Limited Note 5 South Africa 100 100            
Imperilog Limited Note 6 South Africa 100 51 015 305   108 114      
Boundlesstrade                    
154 (Pty) Limited Note 7 South Africa 90 200   54 54      
Jurgens Ci (Pty) Limited Note 8 South Africa 100 1 000   151 151      
Alert Engine Parts                    
(Pty) Limited Note 9 South Africa 100 7 500   88 88      
Midas (Pty) Limited Note 10 South Africa 75 1 000   410 410      
CIC Holdings Limited Note 11 Namibia 100 252 188 081   724 724      
Other, including indirect interest           1 067 934 1 364 286  
            6 825 5 898 2 721 1 735  
1. General information in respect of subsidiaries is set out in respect of only those subsidiaries, the financial position of which are material for a proper appreciation of the affairs of the group. A full list of subsidiaries and associated companies is available on request at the company’s registered offices.  
2. Imperial Holdings International Cooperation U.A is the holding company of Imperial Mobility International BV and its subsidiaries, which conducts integrated logistics solutions and vehicle sales.  
3. Business conducted by Imperial Group (Pty) Limited comprises vehicle rental, motor trading, tourism, automotive components, property investments, transportation, sale of motor components, panelbeating and group services.  
4. Business conducted by Associated Motor Holdings (Pty) Limited comprises motor vehicle importation, dealership sales and after-sales services, and industrial equipment.  
5. Imperial Capital Limited owns and finances assets to group companies.  
6. Business conducted by Imperilog Limited comprises transport logistics.  
7. Boundlesstrade 154 (Pty) Limited has a joint venture in a motor vehicle distributorship and a subsidiary for golf carts.  
8. Jurgens Ci (Pty) Limited is the manufacturer and distributor of leisure caravans and camping equipment.  
9. Alert Engine Parts (Pty) Limited is a wholesaler and retailer of motor vehicle engine parts.  
10. Midas (Pty) Limited is a wholesaler and retailer of auto parts.  
11. CIC Holdings Limited, a previously JSE-listed entity operates in the fast moving consumer goods industry.  

Interest in principal subsidiaries and new business combinations

              Book value of interest  
              Shares at cost
less impairments
Indebtness
less impairments
 
             
Company   Nature of
business
Place of
incorporation
Interest
owned
directly or
indirectly
(%)
Ordinary
shares in
issue
  2012
Rm
2011
Rm
2012
Rm
2011
Rm
 
Principal subsidiaries of Imperial Mobility International BV                      
Imperial Logistics International GmbH and subsidiaries   Note 1 Germany 100 4   1 680 1 347      
Wijgula and subsidiary   Note 1 Netherlands 100 73 440   219 206      
Rijnaarde B.V.   Note 1 Netherlands 100 10 000   63 59      
Imperial De Grave and subsidiaries   Note 1 Netherlands 100 5 000   57 54      
Lehnkering Group   Note 1 Germany 100 5   1 871        
Imperial Mobility Finance Belgium GCV   Note 2 Belgium 100 81 800 000   850 802      
Imperial Mobility Deutschland Beteiligungs GmbH   Note 2 Germany 100 1   185 174      
Imperial Mobility UK Co and subsidiaries   Note 3 United Kingdom 100 103   375 354      
Associated Motors Australia (Pty) Limited   Note 4 Australia 90 81   276 260      
Principal subsidiaries of Associated Motor Holdings (Pty) Limited                      
Imperial Car Imports (Pty) Limited   Note 5 South Africa 100 10 000   6 6 163 163  
Hyundai Auto South Africa (Pty) Limited   Note 5 South Africa 100 1 000   100 100 (208) (459)  
Imperial Daihatsu (Pty) Limited   Note 5 South Africa 99,9 10 000 000   11 11 52 19  
Kia Motors SA (Pty) Limited   Note 5 South Africa 100 25 000       (113) (91)  
Accordian Investments (Pty) Limited   Note 5 South Africa 60 45 000 000   25   15    
KMSA Holdings (Pty) Limited   Note 6 South Africa 75 10 000   4 4 52 47  
Uvundlu Investments (Pty) Lim   Note 7 South Africa 75 2 050   140 110 245 119  
1. Engaged in transport and logistics.  
2. Financing.  
3. Engaged in commercial vehicle sales, and after – sales services.  
4. Engaged in dealership sales and after – sales services.  
5. Importer and retailer of motor vehicles, parts and accessories.  
6. Importer and retailer of motorcycles, parts and accessories.  
7. Distributor of industrial equipment.  

New business combinations

Subsidiaries and businesses acquired Nature of
business
  Operational
segment
Date
acquired
Interest
acquired
(%)
Purchase
consideration
transferred
Rm
 
Lehnkering Group Logistics   Logistics January 2012 100 1 892  
Transport Holdings Botswana Group Transport logistics   Logistics March 2012 80 66  
Accordian Investments (Pty) Limited Distributor and importer   Distributorships July 2011 60 (11)  
Watts Truck Centre Limited (Gloucester) Vehicle sales and services   Automotive retail February 2012 100 26  
Bobcat Group Industrial equipment   Distributorships June 2012 67,5 19  
Individual immaterial businesscombinations           249  
Total purchase consideration transferred           2 241  

Reason for the acquisitions

The Lehnkering Group, was acquired to expand the international logistics business and to benefit from synergies within the shipping business.

To expand our logistics business within Africa we acquired a further 40% interest in Transport Holdings Botswana Group, a previously held associate in which we held 40%.

To expand our distribution business we acquired a further 20% interest in Accordian Investments (Pty) Limited, a previously held associate in which we held 40%.

Watts Truck Centre Limited (Gloucester), was acquired to expand our automotive retail business within the United Kingdom.

Bobcat Group, was acquired to expand our distribution business.

Impact of the acquisitions on the results of the group Total
Rm
Lehnkering
Group
Rm
Transport
Holdings
Botswana
Group
Rm
Accordian
Investments
(Pty) Limited
Rm
Watts Truck
Centre Limited
(Gloucester)
Rm
Bobcat
Group
Rm
Individually
immaterial
acquisitions
Rm
 
From the dates of acquisition, the acquired businesses contributed:                
    Revenue 4 214 2 993 121 464 119   517  
    Attributable profit 111 96 3   1   11  
Had all the acquisitions been consolidated from 1 July 2011 the income statement would have included:                
    Revenue 7 817 5 867 313 464 317 223 633  
    Attributable profit 214 180 13   3 4 14  

Fair value of assets acquired and liabilities assumed at date of acquisition:   Total
Rm
Lehnkering
Group
Rm
Transport
Holdings
Botswana
Group
Rm
Accordian
Investments
(Pty) Limited
Rm
Watts Truck
Centre Limited
(Gloucester)
Rm
Bobcat
Group
Rm
Individually
immaterial
acquisitions
Rm
 
Assets                  
Intangible assets   872 857 3     1 11  
Investments, loans, associates and joint ventures   55 40 3       12  
Property, plant and equipment   1 045 935 11 2 4 11 82  
Transport fleet   467 245 54     47 168  
Vehicles for hire   50           3  
Non-current financial assets   16 11         5  
Deferred tax assets   97 91     2   4  
Inventories   383 98 3 142 56 70 14  
Tax in advance   28 25       2 1  
Trade and other receivables   2 097 1 807 70 57 38 39 86  
Loans due by group entities   52 40       12    
Cash resources   312 256 19   8 3 26  
    5 474 4 405 163 201 108 185 412  
Liabilities                  
Retirement benefit obligations   342 342            
Interest-bearing borrowings   1 476 1 161 32 118   35 130  
Deferred tax liabilities   435 395 11     5 24  
Non-current financial liabilities   1           1  
Trade and other payables and provisions   2 492 2 055 60 112 106 87 72  
Loans due to group entities   142 8   16   39 79  
Current tax liabilities   44 39 1       4  
    4 932 4 000 104 246 106 166 310  
Acquirees’ carrying amount at acquisition   542 405 59 (45) 2 19 102  
Less: Non-controlling interests   (58)   (28) 18   (6) (42)  
Net assets acquired   484 405 31 (27) 2 13 60  
Purchase consideration transferred   2 241 1 892 66 (11) 26 19 249  
– Cash   2 147 1 892 52 2 26 6 169  
– Contingent consideration   76         13 63  
– Fair value of other assets transferred   5     5        
– Fair value of previously held interest   13   14 (18)     17  
                   
Excess of purchase price over net assets acquired   1 757 1 487 35 16 24 6 189  

Trade and other receivables acquired had gross contractual amounts of R2 110 million of which R13 million was doubtful. None of the goodwill is expected to be deductible for tax purposes. Non-controlling interests have been calculated based on their proportionate share in net assets.

Details of contingent consideration

The contingent consideration requires the group to pay the vendors an additional total amount of R76 million over three years if the entities’ net profit after tax exceeds certain earnings targets.

Acquisition costs

Acquisition costs amounting to R51 million has been excluded from the purchase consideration and have been recognised as an expense during the year.

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