Notes to the consolidated financial statements – Note 17

    2014
R’000		     2013
R’000		  
17. Interest in associates          
  Listed associates 3 467 317     767 551  
     Net asset value at acquisition 1 068 924     569 508  
     Inherent goodwill 3 515 253     463 843  
     Impairment allowances (1 116 860)     (265 800)  
  Unlisted associates 126 373     103 081  
     Net asset value at acquisition 92 592     72 030  
     Inherent goodwill 33 781     31 051  
  Investments in associates at cost less impairments 3 593 690     870 632  
  Attributable share of post-acquisition reserves of associates 300 881     279 028  
     At beginning of year 279 028     188 476  
     Share of current year earnings net of dividends 33 354     97 358  
     Share of movement in other reserves 253     3 516  
     Reversal of prior year reserves on becoming subsidiary, disposal or change in shareholding (11 754)     (10 322)  
  Advances 33 862     50 219  
    3 928 433     1 199 879  
  Advances to associates bear interest at rates of between 0% and 11% (2013: 0% and 11%) and have no fixed terms of repayment.

A list of the Group’s significant associates, their country of incorporation and principal place of business, the Group’s percentage shareholding and an indication of their nature of business is included on annexure A to these financial statements.

During the year 31,9% of the issued ordinary capital of Adcock Ingram Holdings Limited (Adcock) was acquired by the Group, to add to the 2,3% held at June 30 2013, for a consideration of R3,9 billion.

Adcock is a leading South African pharmaceutical manufacturer, listed on the Johannesburg Stock Exchange. The company manufactures, markets and distributes a wide range of healthcare products to both the private and public sectors of the market.

The majority of the shares were acquired in January and February 2014. The Group has accounted for Adcock as an associate with effect from March 1 2014.

Adcock changed its year-end during the year from September to June, and the information provided below is for the nine months ended June 30 2014. Full details of Adcock’s results can be found on their website www.adcock.co.za.
    For the
nine months
ended
June 30
2014
R’000		  
  Summarised aggregated financial information of Adcock:    
  Revenue 3 640 780  
  Loss for the period (962 156)  
  Other comprehensive income for the period 44 912  
  Total comprehensive loss for the period (917 244)  
  Dividends received from Adcock during the period –  
  Current assets 2 666 093  
  Non-current assets 2 739 749  
  Current liabilities (1 500 421)  
  Non-current liabilities (1 047 942)  
  Minority interest (118 578)  
  Reconciliation of the above summarised financial information to the carrying amount of Adcock recognised in the consolidated financial statements:    
  Net assets of Adcock 2 738 901  
  Proportion of Group’s interest in Adcock 936 704  
  Inherent good 3 268 801  
  Provision for impairment of carrying value (1 056 060)  
  Carrying value of Group’s interest in Adcock 3 149 445  
  Market value as at June 30 2014 3 149 445  
 

The Group acquired the entire issued share capital of Home of Living Brands Holdings Limited that it did not already own, being 71,7%, with effect from July 1 2013; and the entire issued share capital of Mvelaserve Limited that it did not already own, being 65,3% with effect from November 1 2013. Refer to note 11 for further details.

Summarised aggregated financial information of associates that are not individually material:
    2014
R’000		     2013
R’000		  
  The Group’s share of profit 71 915     161 824  
  The Group’s share of other comprehensive income (loss) (9 333)     3 516  
  The Group’s share of total comprehensive income 62 582     165 340  
  Aggregate carrying amount of the Group in these associates 778 988     1 199 879  

Notes to the consolidated financial statements – Note 17