Notes to the consolidated financial statements

Acquisitions

During the year ended 31 March 2008, the Group acquired 80% of the issued share capital of G.C. Hahn & Co. (Hahn) from Georg Hahn Familien GmbH (the Hahn Family). As the Group effectively bears all the risks and rewards for 100% of this business, no minority interest is recognised in the Group’s financial statements.

The acquisition agreement allowed for the Group to acquire the remaining 20% of the issued share capital of Hahn prior to 1 January 2020 through put and call options. During the year to 31 March 2010 a put option was exercised for 75% of the remaining 20% for a total consideration of £21 million which was paid by the Group on 31 March 2010. The Group can acquire the remaining 5% of the issued share capital of Hahn prior to 1 January 2020 through put and call options. At 31 March 2010 deferred consideration of £7 million is recognised in trade and other payables (Note 27).

In the year ended 31 March 2009, the Group paid £1 million of deferred consideration relating to the acquisition of Tate & Lyle South Africa in the year ended 31 March 2005. The payment represented an adjustment to the purchase price and was recognised as an addition to goodwill in the year.

Disposals

International Sugar Trading

In the year to 31 March 2009, the Group disposed of its international Sugar Trading business to Bunge Limited (Bunge) for total consideration, net of disposal costs of £57 million. Following agreement of completion adjustments, the Group repaid £26 million to Bunge during the year to 31 March 2010. A summary of the disposal is provided below:

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Year to 31 March

 

2010
£m

2009
£m

Total consideration, net of costs

(26)

57

Net assets disposed

(14)

Trade and other payables repaid/(assumed)

26

(43)

Other items, including risk transfer payments and fair value adjustments

(22)

Loss on disposal

(22)

 

 

 

Cash flows:

 

 

Cash consideration, net of costs

(26)

57

Cash (used in)/generated from disposals

(26)

57

A number of minority interests relating to the international Sugar Trading business were not included in the initial sale and are being addressed separately in accordance with the relevant shareholders’ agreements. The Group anticipates completion of disposal of these minority interests, in the year to 31 March 2011. These minority interests are classified as current assets held for sale in the statement of financial position and are stated at £18 million as at 31 March 2010 (2009 – £28 million).

Other Disposals

In the year ended 31 March 2009, the Group disposed of its shareholding in Orsan UK Ltd, the holding company of its Chinese monosodium glutamate business. Total consideration, net of provisioning and disposal costs was £1 million and the profit on disposal was £2 million. The cash impact of the disposal was an outflow of £4 million.