NOTE D

		2014 Rm	2013* Rm	2012* Rm
D.	ACQUISITION OF SUBSIDIARIES, INVESTMENTS AND INTANGIBLES:
	Inventories acquired	(63)	(218)	(746)
	Receivables acquired	(5)	(113)	(221)
	Payables, taxation and deferred taxation acquired	36	138	227
	Borrowings net of cash	30	353	161
	Provisions			99
	Property, plant and equipment, non-current assets, goodwill and non-controlling interest	(100)	(488)	(197)
	Total net assets acquired	(101)	(328)	(677)
	Goodwill arising on acquisitions	(38)	(37)	(54)
	Intangibles arising on acquisition in terms of IFRS 3 Business Combinations	(42)	(132)	(706)
	Total purchase consideration	(181)	(497)	(1 437)
	Less: Deconsolidation of joint venture			21
	Net cash cost of subsidiaries acquired	(181)	(497)	(1 416)
	Bank balances and cash in subsidiaries acquired			3
	Investment and intangible assets acquired	(142)	(278)	(176)
	Cash amounts paid to acquire subsidiaries, investments and intangibles	(323)	(775)	(1 589)

Restated for the treatment of IFRS 10, IAS 19 and discontinued operations – refer to note 34.

During the current financial year there were the following acquisitions included in the total above:

Kumkani Cranes

An 80% shareholding in Kumkani Cranes (Pty) Limited, a modular abnormal transport business for loads exceeding 80 tons was acquired on 5 September 2014. The primary reason for the acquisition is that it complements the Manline Mega business and enables Barloworld Transport to offer a full spectrum of abnormal transport solutions locally and into Africa.

Zabalaza

Timber 24 (Pty) Limited, a subsidiary within Barloworld Transport, acquired the net assets of Zabalaza Carriers CC effective 1 June 2014. The primary reason was to secure a number of combination timber and sugar cane trucks and trailers as well as contracts and customer relationships within the timber and sugar cane industry.

Leach Toyota and Hino

Barloworld South Africa (Pty) Limited acquired the net assets of Leach Toyota and Hino effective 10 March 2014. The primary reason for the acquisition was to expand the Motor Retail footprint.

Jaguar Land Rover N4

Barloworld South Africa (Pty) Limited acquired a 51% shareholding in Ro Metrics Trading (Pty) Limited, a Jaguar and Land Rover dealership, effective 1 July 2014. The primary reason for the acquisition was the acquisition of a new franchise.

Aero Aqua

Barloworld Logistics acquired Aero Aqua, a small clearing and forwarding business from December 2013. The primary reason for the acquisition was to gain a niche in the bulk chemical business customs clearance market.

Zambia

On 1 September 2014, the group acquired an agricultural business in Zambia to expand on the current businesses in South Africa, Mozambique and Russia for a total consideration of R13.5 million. Of the consideration, R3 million relates to deferred consideration held in escrow for 12 months pending any net asset valuation issues post-sale. The group considers it likely that this deferred consideration will ultimately be paid to the seller.

The group included revenue of R239 million and net profit after tax of R5 million, in relation to the above acquisitions. It estimated that if these acquisitions were part of the group since the beginning of the financial year, they would have added R814 million to revenue and R31 million to net profit after tax.

The goodwill of R38 million arising from the acquisitions consists largely of the synergies and economies of scale expected from integrating these operations into the existing business. None of the goodwill recognised is expected to be deductible for income tax purposes.

Tanzuk

Subsequent to year-end, Avis Southern Africa Limited acquired a 100% shareholding in Tanzuk Limited, a fleet leasing business in Tanzania, effective 4 November 2014 for US$3.33 million. The primary reason for the acquisition was the expansion of the leasing operations into East Africa. The final purchase price allocation will be completed within the next 12 months.