Acquisition of subsidiaries

Shares in the following subsidiaries were acquired during the year ended 31 May 2009:

	Effective date of acquisition	% acquired
Celebia Holdings Limited**	1 July 2008	100%
Blue Label Mexico S.A. de C.V.**	18 July 2008	70%
Answers Direct (Proprietary) Limited	1 August 2008	80%
Blue Label Data Solutions (Proprietary) Limited**	1 August 2008	81%
Blue Label Australasia (Proprietary) Limited	19 August 2008	50.5%
Africa Prepaid Services Nigeria Limited**	1 December 2008	51%
Blue Label Telecoms USA Inc**	2 December 2008	100%
Blue Label USA, LLC**	2 December 2008	50.01%

**Start up operations.

Details of the total net assets acquired and the resulting goodwill and reserves at acquisition are as follows:

		Total
		R’000
	Total purchase consideration	29 646
	Fair value of net assets acquired	21 966
		7 680
	Goodwill	1 689
	Transaction with minority reserve	5 991

The assets and liabilities acquired through the acquisitions are as follows:

		Acquirer’s carrying
		amount and
		fair value
		at acquisition
		date
		R’000
	Cash and cash equivalents	31 663
	Property, plant and equipment	161
	Intangible assets	21 820
	Goodwill	800
	Inventories	54
	Receivables	1 748
	Borrowings	(23 167)
	Payables	(1 302)
	Fair value of subsidiaries acquired	31 777
	Minority interests	(9 811)
	Fair value of net assets acquired	21 966
	Cash and cash equivalents in subsidiaries acquired	31 663
	Total purchase consideration	(29 646)
	Subsequent capital contribution	(49 630)
	Less purchase consideration still due	415
	Cash outflow on acquisition	(47 198)

Had these acquisitions of subsidiaries been made at the beginning of the financial year they would have contributed R7.037 million to revenue and (R5.036) million loss to net profit after tax. The actual contribution to revenue and net profit after tax for the year was R7.037 million and (R3.177) million loss. (This excludes the effect of start up operations).