Notes to the Company annual financial statements | Note 7

7. Other receivables
 

Accounting policy

Refer to accounting policy in note 6 and 13.

2022
R'000		 2021
R'000
Financial instruments at fair value through profit or loss
Contingent consideration* — 71 968
Financial asset
Dividend receivable 5 885 —
Non-financial instruments
Prepaid expenses 416 394
6 301 72 362

The fair value of other receivables approximates their carrying amounts.

* Disposal of VAS Operations to DNI 4PL Contracts Proprietary Limited

On 25 September 2019, the Company announced that it had entered into an agreement to dispose of its 85% shareholding in Blue Label Mobile Group Proprietary Limited (BLM) as well as its 51% shareholdings in Simigenix Proprietary Limited and Panacea Proprietary Limited (together the VAS Operations), to DNI 4PL Contracts Proprietary Limited (DNI), for a purchase consideration of R450 million, inclusive of loan claims, plus the amounts which BLM has disbursed towards the acquisition of 50% of Hyve as at the transaction closing date. Of the purchase consideration of R450 million, R100 million (bearing interest at prime overdraft rates plus 2% per annum compounded on a monthly basis), was contingent upon the solvency and liquidity status of Cell C Limited (Cell C) being proven.

On 16 May 2022, an addendum was signed between the Company, DNI and Digital Ecosystems Proprietary Limited (formerly Blue Label Mobile Group Proprietary Limited) waiving the requirement for the solvency and liquidity status of Cell C needing to be proved. Consequently, the R100 million contingent consideration was received, inclusive of interest.

Note  R'000 
Opening balance (71 968)
Contingent consideration received 117 791 
Gain arising on receipt 15  45 823 
Exposure to currency risk

The carrying amounts of other receivables are denominated in South African rand.