Page 231 - Capricorn IAR 2020

NOTES TO THE CONSOLIDATED AND SEPARATE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 30 June 2020
20. INVESTMENT IN ASSOCIATES (continued)
20.2 Sanlam Namibia Holdings (Pty) Ltd (continued)
Technique used for directors’ valuation:
Sanlam Namibia Holdings (Pty) Ltd is a private company and there is no quoted market price available for its shares. The directors’ valuation was determined by using the price to embedded value basis of valuation.
2020 INTEGRATED ANNUAL REPORT
Group
2020 2019 N$’000 N$’000
Company
2019 N$’000
1,032,937 168,435 168,435
5,010,795 621,131
(4,744,744) (531,582)
88,737 2,766
2020 N$’000
355,600
104,760 18,606
123,366
88,737
2,766 –
– 294
91,797
88,737
88,737
94,767
Summarised financial information (unaudited)
Revenue (net insurance income) 763,178 Profit after tax 100,300 Total comprehensive income 100,300
Non-current assets 5,379,570 Current assets 584,840 Non-current liabilities (5,191,060) Current liabilities (426,452)
Net asset value 346,898
Interest in associate (29.5%) 102,196 Goodwill on acquisition 18,606
Carrying value of investment in associate 120,802
The associates above have December financial year- ends and are incorporated in Namibia. The country of incorporation/registration is also their principal place of business. The results of associates are equity accounted. Management accounts as at 30 June 2020 have been used for equity accounting the share of results of associates for their half year ended 30 June 2020.
20.3 Paratus Namibia Holdings Ltd
The company holds a 17.7% interest in Paratus Namibia Holdings Ltd, a Capital Pool Company with the objective of pursuing investments in the Information Communication and Technology Sector.
Carrying value of investment in associate
Investment at cost 88,737 Share of current year’s retained income 4,180
– Profit before tax 5,591 – Current and deferred tax (1,411)
Dividends paid (862) Post-acquisition retained income at the beginning
of the year 259
92,314
Valuation 94,767
88,737
88,737 88,737
Effective 1 January 2020. Paratus Namibia Holdings Ltd acquired the remaining shares in Paratus Telecommunications (Pty) Ltd (registered in Namibia), through a share swap transaction with Paratus Group Holdings Ltd (registered in Mauritius). The share swap transaction resulted in the direct interest held in Paratus Namibia Holdings Ltd by Capricorn Group to decrease from 30.0% to 17.7%. The effective interest held in Paratus Namibia Holdings Ltd by Capricorn Group remains 30.0%.
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