AfroCentric Group

Amortisation of intangible assets increased by R29.36 million arising through the WAD asset acquisition and the IFM Fraud Detection Platform.

26 401 959 shares to the value of R135.9 million will be issued to WAD vendors subject to certain profit thresholds being attained. These shares will be issued during 2017 and the value thereof has already been anticipated by inclusion in Intangible Assets.

SANLAM acquired an effective 27% interest in AHL through AHA, for R703 million. The acquisition agreement provides for a performance warranty in AHL, any breach of which, entitles SANLAM to claim a maximum additional 4.3% interest in the shares of AHA in satisfaction of such claim. In the event that the claim calculates at an amount in excess of 4.3%, SANLAM has a right to require ACT to repurchase the shares owned by SANLAM at SANLAM’s initial cost plus interest at the 90 day deposit rate from the date of investment to the date of redemption. The Board do not expect such conditions to arise, but International Accounting Standards (IAS 32) dictates the disclosure of such circumstances under Non-current liabilities, rather than Capital and reserves.

The reduction in issued ordinary share capital and share premium, while inclusive of the shares issued in connection with the acquisition of the WAD assets, is reduced by the sum of R703 million relating to the IAS 32 disclosure requirements set out in NOTE 3 above.

Distributable reserves increased by the extent of the period profits including the amount of the profit on sale of the AHA shares to SANLAM.