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149
Telkom Integrated Report 2017
15.2 Common control transactions
- continued
2017
15.2.1 Enterprise business
On 1 November 2016 Enterprise, previously a division ofTelkom, was sold to BCX to realise synergies. The integration will enable the
Telkomgroup to offer Enterprise solutions beyond connectivity and to strengthenTelkom’s leadership in the Enterprise market.
The transaction was financed through redeemable preference shares from BCX toTelkom and accounted for as a common control
transaction. BCX recognised the acquired Enterprise assets at their carrying amount on the date of sale and the difference between the
proceeds and the carrying amount of the Enterprise business was recognised as a common control equity reserve. InTelkom company the
difference between the carrying amount of the Enterprise business and proceeds was recognised in profit or loss.
2016
15.2.2TelkomDCO
On 1 November 2015 Cybernest (DCO), previously the IT business division ofTelkom, was sold to BCX to realise synergies. The transaction
was financed through a loan fromTelkom to BCX and accounted for as a common control transaction. BCX recognised the acquired DCO
assets at their carrying amount on the date of sale and the difference between the proceeds and the carrying amount of the DCO business
was recognised as a common control equity reserve. InTelkom company the difference between the carrying amount of the DCO business
and proceeds was recognised in profit or loss.
15.3 Disposals
2017
Rm
15.3.1 Nanoteq Proprietary Limited
The group concluded a transaction to sell its Nanoteq business shareholding, effective 30 September 2016, for a total
consideration of R57 million.
The net cash flows attributable to the operating, investing and financing activities of discontinued operations:
Net assets disposed
1
Non-controlling interest
(1)
Consideration
57
Profit on disposal
57
15.3.2 Other properties
Telkomboard approved the disposal of an additional 26 properties to the market. These properties were identified as no longer needed for
theTelkomoperations. The sale is planned to take place during the 2018 financial period.
2017
Rm
At 31 March 2017, the group recognised these properties as held for sale in its statement of financial position.
The fair values of these properties at 31 March 2017 exceed their carrying values.
Carrying value
12
15.4 Goodwill reconciliation - 2017
Opening balance
1 214
Acquisition of Anco*
(8)
Acquisition of RDC
24
Acquisition of Taropa
7
Acquisition of African Arete
16
1 253
2016
Rm
Goodwill reconciliation - 2016
Opening balance
63
Acquisition of BCX
1 119
Acquisition of African Arete
32
1 214
In the current financial year the entire goodwill allocation relating to the BCX group was allocated to the BCX cash-generating unit (CGU).
A value in use calculation was performed in the current financial year. There is no impairment on the BCX CGU.
* At 31 March 2016, goodwill of R32 million was raised in respect of the acquisition of Anco. This amount has been reduced by R8 million in the current year as
a result of the finalisation of the goodwill calculation.