87 / 100
During the year the Group (excluding the hotels) restructured its arrangements with all banks to align the debt facilities with
relevant subsidiary entities that have contributed towards the debt. This has resulted in a cost effective structure which has led to
a number of assets being released from unnecessary security (see also note 22).The Group debt reported is $268m (2014: 211m)
(see note 22). As at 31 March 2015 Tainui Group Holdings Limited’s debt was $224m (2014: $182m) or 26% of total assets held
by Tainui Group Holdings Limited. Tainui Group Holdings Limited’s policy is that debt cannot exceed more than 30% of total
assets. The Group has not breached any bank covenants as required by the ANZ, ASB Bank, Bank of New Zealand and Westpac
New Zealand Limited during the reporting period (see note 22) (2014: no breach). There are no externally imposed capital
requirements at balance date (2014: nil).
Consolidated
Notes
2015
$’000
2014
$’000
Total borrowings
22
268,094
211,422
Less: cash and cash equivalents
(176,959)
(171,470)
Net debt
91,135
39,952
Total equity
861,561
783,724
Total capital
952,696
823,676
Gearing ratio
10%
5%
2 5 B u s i n e s s c om b i n a t i on s
(a) Summary of acquisitions
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 as at 31 March 2014 of the fair value of the assets and liabilities determined on a provisional basis are provided
in Note 25(b). There were no changes to provisional accounting in the year ended 31 March 2015.
In May 2014 the Group acquired the remaining 18% of the issued shares of Hamilton Riverview Hotel Limited for a purchase
consideration of $5m. The Group now holds 100% of the equity share capital of Hamilton Riverview Hotel Limited. The carrying
amount of the non-controlling interest in Hamilton Riverview Hotel Limited on the date of acquisition was $5.9m. The group de-
recognised the non-controlling interest and recorded the difference between the consideration paid and value of net assets as at
the acquisition date in retained earnings. Details as at 31 March 2015 of the purchase are provided in Note 25(c).
85
waikato-tainui
annual report 2015