194 / 202
Notes to the financial statements
continued
for the year ended 30 September 2015
190
Tiger Brands Limited integrated annual report
2015
39 Subsequent events
As set out in the chairman’s report on page 2, a decision was taken by Tiger Brands Limited on 16 November 2015
not to extend any further financial support to TBCG.
Subject to regulatory approvals, with effect from 11 December 2015, Tiger Brands Limited has reached agreement
with the board of TBCG and Dangote Industries Limited (DIL) in terms of which DIL will provide TBCG with an
immediate cash injection of N10 billion (R0,7 billion). In return Tiger Brands will sell its 65,7% shareholding in
TBCG to DIL for a nominal consideration of $1 and write off its shareholder loans to TBCG of R0,7 billion. In addition,
Tiger Brands will settle outstanding debt guaranteed on behalf of TBCG amounting to R0,4 billion. On a pro forma
basis, assuming the agreement between Tiger Brands Limited and DIL had been concluded on 30 September 2015,
Tiger Brands would not have reflected a loss on disposal of its interest in TBCG as at that date.
There were no other material subsequent events that occurred during the period subsequent to 30 September 2015, but
prior to these consolidated annual financial statements being authorised for issue.
GROUP
2015
2014
40 Analysis of profit from discontinued operation
The combined results of the discontinued operation included in the profit for the year
is set out below.
Profit for the year from discontinued operation (attributable to owners of the company)
Turnover
–
186,9
Expenses
–
(156,1)
Operating income before abnormal items
–
30,8
Gain on remeasurement to fair value on transfer of net assets to held-for-sale
–
18,6
Operating income after abnormal items
–
49,4
Finance costs
–
(5,0)
Profit before taxation
–
44,4
Taxation
–
(3,4)
Profit for the year from discontinued operation (attributable to owners of the company)
–
41,0
Attributable to non-controlling interest
–
(11,1)
Attributable to owners of parent
–
29,9
Cash flows from discontinued operation
Net cash inflows from operating activities
–
(23,9)
Net cash outflows from investing activities
–
97,0
Net cash outflows from financing activities
–
(72,2)
Net cash outflows
–
0,9
The Dangote Agrosacks Limited business was acquired effective 4 October 2012 as part of the Dangote Flour Mills plc
acquisition. During August 2013, a decision was made to dispose of the business resulting in Dangote Agrosacks
Limited being classified and accounted for at 30 September 2013 as a disposal group held-for-sale. The business was
disposed of, effective November 2013, thus the results noted above for the year ended 30 September 2014 are for
two months only.