138 / 248
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
136
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
6.
INVESTMENTS IN AND LOANS TO ASSOCIATES AND JOINT VENTURES continued
Shares in associates and joint ventures acquired during the prior year continued
Effective
Date acquired percentage
Forensic Intelligence Data Solutions
Proprietary Limited
Associate
1 June 2013
25
Blue Label Mexico S.A. de C.V.
Joint venture
1 January 2014
0.57
During the prior year Forensic Intelligence Data Solutions Proprietary Limited was acquired for a
consideration of 25 cents.
In the prior year, there was a further capital contribution of R89.3 million to BLM. This resulted in
a dilution of shares held by an outside shareholder increasing our shareholding to 45.57%.
Shares in associates disposed of during the current year
Effective
Date disposed percentage
Smart Voucher Limited trading as Ukash
Associate
1 April 2015
17.25
Ukash was disposed of in April 2015. The proceeds on this disposal was R112.4 million and the profit
recorded in the statement of comprehensive income was R37.2 million including the foreign currency
translation reserve that was recycled to profit or loss.
The proceeds of R112.4 million include a cash component of R94.9 million and a contingent
receivable of R17.5 million. The contingent consideration arrangement requires the acquirer to pay
in cash to the Group an additional amount of R18.1 million if certain warranties are achieved. The
amounts are receivable in four six-month intervals commencing 30 September 2015.
The potential undiscounted amount of all future receipts that the Group could receive is between
Rnil and R18.1 million (£nil and £1 million).
The fair value of the contingent consideration arrangement of R17.5 million was estimated by
applying the income approach. The fair value estimates are based on a discount rate of 1.5% based
on the United Kingdom prime lending rate. For all four warranties management has assumed a
probability of 98% based on the historical knowledge of the business and the warranties appearing
achievable.