36

EVENT AFTER THE REPORTING PERIOD

  On 29 July 2016, the holding company acquired the entire issued share capital of Dwarsrivier Chrome Mine Proprietary Limited (DCM) from Assmang.

The acquisition of DCM results in an improved balance in the group’s product risk.

The fair value of assets acquired and liabilities assumed as part of this business combination, based on values as at 30 June 2016, was as follows:
         
        R’000
  Property, plant and equipment     1 136 980 
  Other non-current financial assets     17 683 
  Inventories     382 902 
  Trade and other receivables     188 637 
  Other current financial assets     12 384 
  Cash resources     12 787 
  Long-term provisions     (63 322)
  Trade and other payables     (277 918)
  Short-term provisions     (119 695)
  Net asset value acquired, at fair value     1 290 438 
  Deferred tax liability raised in respect of the fair value of assets acquired and liabilities assumed     (210 617)
  Fair value of interest already held by the group     (494 955)
  purchase price for acquisition of 50% DCM “A” shares issued to ARM     (225 000)
  fair value of equity interest distributed by Assmang     (269 955)
  Fair value of purchase consideration     (540 207)
  Purchase price, agreed as at 1 July 2014 (cash consideration, refer note 8)     (450 000)
  Amount refunded to Assmang for operating funds advanced between 1 July 2014 and 30 June 2016, net of profits realised in the same period (refer note 32)     (55 313)
  Interest foregone on purchase consideration placed in escrow on 1 July 2015 and paid to seller on 29 July 2016 in terms of acquisition agreement     (34 894)
         
  Bargain purchase gain     44 659 
         
  The above bargain purchase gain results largely from the purchase price being agreed upon as at 1 July 2014 and the transaction being concluded on 29 July 2016, when all of the conditions precedent were met.

Had control been obtained by 1 July 2015, the following income statement disclosures for 2016 would have been adjusted as follows:
         
        Pro forma
    Audited Adjustment adjusted
    R’000  R’000  R’000 
  Profit for the year attributable to shareholders of the holding company 1 539 363  17 934  1 557 297 
  Revenue 2 941 047  1 667 301  4 608 348