Notes to the Group financial statements | Note 44
for the year ended 31 December 2010 |
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| 44. |
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BUSINESS COMBINATIONS |
| 44.1 |
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Acquisitions
During the year under review, the Group did not conclude any business combinations as defined in accordance with IFRS. |
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| 44.2 |
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Prior year acquisitions
During the prior year, certain subsidiaries of the Group acquired the following entities:
(a) An additional 59% in iTalk Cellular (Proprietary) Limited, a cellular service provider, was acquired in January 2009 for a purchase consideration
of R355 million.
(b) 100% of Verizon South Africa (Proprietary) Limited, an internet service provider, was acquired in February 2009 for a purchase consideration
of R1 771 million. |
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iTalk and Verizon SA acquisitions |
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Carrying
amount on
acquisition date
Rm |
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Total fair
value
Rm |
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The assets and liabilities arising from the acquisitions are as follows |
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Property, plant and equipment |
106 |
|
106 |
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Other non-current assets |
95 |
|
95 |
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Investments |
1 |
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1 |
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Cash and cash equivalents |
95 |
|
95 |
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Net working capital |
42 |
|
42 |
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Borrowings |
(118) |
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(118) |
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Taxation liabilities |
7 |
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7 |
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Deferred tax liabilities |
— |
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(80) |
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Customer relationships |
— |
|
284 |
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Other liabilities |
(56) |
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(56) |
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Net asset value |
172 |
|
376 |
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Purchase consideration |
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2 126 |
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Fair value of net assets acquired |
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(376) |
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Goodwill |
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1 750 |
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