Notes to the Group financial statements | Note 12
for the year ended 31 December 2010 |
| 12. |
INVESTMENT IN ASSOCIATES |
| |
The Group had the following effective percentage interests in associates:
| |
|
|
Effective % interest in issued
ordinary share capital |
|
| Associate |
Principal activity |
Country of incorporation |
December
2010 |
|
|
December
2009 |
|
| Number Portability (Proprietary) Limited |
Porting |
South Africa |
20 |
|
|
33 |
|
| Leaf Wireless (Proprietary) Limited |
Cellular dealership |
South Africa |
44 |
|
|
40 |
|
| Belgacom International Carrier Services SA |
Telecommunications |
Belgium |
20 |
|
|
20 |
|
| |
|
December
2010
Rm |
|
|
December
2009
Rm |
|
| Balance at beginning of year |
|
1 462 |
|
|
60 |
|
| Additions |
|
— |
|
|
1 508 |
|
| Movements |
|
— |
|
|
(38) |
|
| Share of results after tax |
|
52 |
|
|
(5) |
|
| Effect of movements in exchange rates |
|
(212) |
|
|
(63) |
|
| Balance at end of year |
|
1 302 |
|
|
1 462 |
|
| Share of results after tax comprises |
|
|
|
|
|
|
| Share of results of associates after tax |
|
133 |
|
|
5 |
|
| Unwind of deferred tax on customer relationships – BICS |
|
42 |
|
|
— |
|
| Amortisation of customer relationships – BICS |
|
(123) |
|
|
— |
|
| |
|
52 |
|
|
5 |
|
| Unless otherwise stated, the Group’s associates’ country of incorporation is also their principal place of |
|
|
|
|
|
|
| operation. |
|
|
|
|
|
|
| In respect of the BICS acquisition that took place in 2009, the Group has concluded the PPA and |
|
|
|
|
|
|
| the following represents a breakdown of the investment attributable to the associate |
|
|
|
|
|
|
| Customer relationships |
|
454 |
|
|
627 |
|
| Deferred tax |
|
(156) |
|
|
(213) |
|
| Goodwill |
|
838 |
|
|
934 |
|
| Net assets at acquisition |
|
154 |
|
|
111 |
|
| |
|
1 290 |
|
|
1 459 |
|
The Group’s share of the results of its associates, which are unlisted, and its aggregated assets (including goodwill) and liabilities, are as follows:
Summary financial information
| |
Effective
interest
Rm |
Number
Portability
Rm |
Leaf Wireless
Rm |
Belgacom
International
Carrier
Services
Rm |
|
| December 2010 |
|
|
|
|
|
| Revenue |
3 229 |
19 |
240 |
15 591 |
|
| Share of results after tax |
52 |
(2) |
(4) |
670 |
|
| Total assets |
1 386 |
48 |
41 |
6 790 |
|
| Total liabilities |
(947) |
(1) |
(44) |
(4 635) |
|
| Attributable net asset value |
439 |
47 |
(3) |
2 155 |
|
| December 2009 |
|
|
|
|
|
| Revenue |
399 |
14 |
404 |
1 170 |
|
| Share of results after tax |
(5) |
* |
(45) |
65 |
|
| Total assets |
1 706 |
28 |
93 |
8 297 |
|
| Total liabilities |
(1 233) |
(1) |
(94) |
(5 979) |
|
| Attributable net asset value |
472 |
27 |
(1) |
2 318 |
|
There are no significant contingent liabilities relating to the Group’s interests in these associates.
* Amounts less than R1 million. |
|
|