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 non-controlling 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 through put and call options. During the year to 31 March 2010 a put option was exercised for 15% of the issued share capital for a total consideration of £21 million which was paid by the Group on 31 March 2010. At 31 March 2011 deferred consideration of £7 million relating to the remaining 5% of the issued share capital is recognised in trade and other payables (Note 27).

Disposals

EU Sugars and Molasses disposal

During the year the Group completed the disposal of EU Sugars to American Sugar Refining, Inc. The disposal comprised an asset sale of the Thames Sugar Refinery and its associated businesses in London and a share sale of Alcantara Empreendimentos SGPS, SA, Tate & Lyle Norge AS and Eridania Tate & Lyle SpA. Total consideration of £227 million remains subject to finalisation of post completion statements (Note 35).

During the year the Group also completed the disposal of Molasses to W&R Barnett Ltd. Total consideration was £66 million, subject to finalisation of post completion statements. The Group incurred £4 million of costs associated with the disposal.

The calculation of the result on disposal is shown below:

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31 March 2011

 

EU Sugars
£m

Molasses
£m

Total
£m

Goodwill and intangible assets

1

2

3

Property, plant and equipment

203

14

217

Investment in associates

2

2

Available-for-sale financial assets

1

1

Derivative financial instruments – assets

18

7

25

Inventories

72

35

107

Trade and other receivables

66

42

108

Trade and other payables

(53)

(33)

(86)

Derivative financial instruments – liabilities

(15)

(3)

(18)

Retirement benefit obligation

(2)

(2)

Cash and cash equivalents

5

5

10

Borrowings

(5)

(3)

(8)

Taxation

(1)

(2)

(3)

Total assets disposed

292

64

356

Non controlling interests disposed

(5)

(5)

Net assets disposed

292

59

351

 

 

 

 

Cash received during the year

225

65

290

Receivable at 31 March 2011

2

1

3

Total consideration

227

66

293

 

 

 

 

Other items:

 

 

 

Disposal costs

(4)

(4)

(8)

Recycling of cash flow hedge reserve

3

3

Exchange differences transferred from equity

11

9

20

(Loss)/gain on disposal

(55)

12

(43)

 

 

 

 

Cash flows:

 

 

 

Cash consideration

225

65

290

Cash disposed

(5)

(5)

(10)

Cash inflow in the year

220

60

280

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.