96
2014
$'000
Total acquisition comprises:
Cash paid
1,000
Trade and other payables (discounted at 7.5%)
10,505
Total net acquisition
11,505
Fair value of equity interest in Hamilton Riverview Hotel Limited held before the business combination
14,191
Total consideration
25,696
Recognised amounts of identifiable assets acquired and liabilities assumed at fair value:
Cash and cash equivalents
3,293
Property, plant and equipment
44,040
Inventories
40
Trade and other receivables
881
Trade and other payables
(1,219)
Other financial liabilities
(358)
Borrowings
(9,200)
Deferred tax liability
(3,183)
Total identifiable net assets
34,294
Provisonal accounting
Non‑controlling interest based on the proportionate interests of the recognised
amounts of the net assets and liabilities
(5,912)
Gain on purchase
(2,686)
25,696
Property, plant and equipment was valued by an independent valuer based on discounted cash flow models.
The Group recognised a gain of $0.3m as a result of measuring at fair value its 41% equity instrument in Hamilton Riverview
Hotel Limited held before the business combination. The gain is included in other income in the Group’s statement of
comprehensive income for the year ended 31 March 2014 (2013: nil).
The revenue included in the consolidated statement of comprehensive income since 16 October 2013 contributed by Hamilton
Riverview Hotel Limited was $6.5m. Hamilton Riverview Hotel Limited also contributed profit of $0.5m over the same period.
Had Hamilton Riverview Hotel Limited been consolidated from 1 April 2013, the consolidated statement of income would show
pro‑forma revenue $15m and profit of $1.6m, excluding the impact of gains arising from measurement on acquisition. The gain
on purchase is classified within other income (see note 4).
The gain on purchase of $2.7m has been reported and is the result of the restatement of control due to both the majority
shareholding being assumed as well as significant influence. In addition to this, a premium adjustment has been received on the
non‑controlling interest on purchase.
27. b u s i n e s s c omb i n at i on s
Summary of acquisition
On 16 October 2013, Tainui Development Limited acquired 41% of the share capital of Hamilton Riverview Hotel Limited taking
its total shareholding to 82%. Hamilton Riverview Hotel Limited owns and operates the Novotel Tainui and Ibis Tainui
in Hamilton.
Details of the fair value of the assets and liabilities acquired determined on a provisional basis are as follows:
waikato raupatu lands trust
notes to the financial statements
f o r t h e y e a r e n d e d 3 1 m a r c h 2 0 1 4
