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The acquisition of certain subsidiaries during the year, resulted in put options being agreed with certain of the non-controlling shareholders. The put options entitle the non-controlling shareholders to sell their holdings in the subsidiaries to the Group at contracted dates and amounts.
The following put options were entered into:
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The non-controlling shareholders in DAC have the option to put their 40% interest in DAC to the Group, using a market valuation formula on
or about June 30 2017 or at market value at June 30 2019. |
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The non-controlling shareholders in Compendium Insurance Group Limited (Compendium) have the option to put 24% of their interest in
Compendium to the Group at a price determined on a multiple of earnings on or about July 1 2019. |
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2015
R’000 |
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2014
R’000 |
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| The affect of granting these put options on the Group’s results can be summarised as follows: |
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| Balance at beginning of year |
926 685 |
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– |
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| Fair value adjustments recorded directly in retained income |
– |
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– |
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| Unwinding of present value discount recognised in the income statement |
19 880 |
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– |
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| Exchange rate adjustments |
(7 135) |
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– |
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939 430 |
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– |
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| Discount rate |
1,99% – 6,25% |
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| Expected settlement dates |
September 30 2017 – July 1 2019 |
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