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Notes to the financial statements

33. Disposals of subsidiaries and businesses

US$ million 2009 2008
Net assets disposed    
Tangible assets 425 479
Other non-current assets 2 43
Current assets 48 210
Current liabilities (34) (83)
Non-current liabilities (65) (113)
Net assets 376 536(1)
Minority interests (3) (116)
Group's share of net assets immediately prior to disposal 373 420
Less: Retained investments in associates (235) -
Net assets disposed 138 420
Cumulative translation differences recycled from reserves - (2)
Net gain on disposals 316 119
Net sale proceeds 454 537
Proceeds received in prior year (270) -
Non-cash consideration (212) -
Costs accrued 6 4
Deal facilitation charges 41 -
Deferred consideration - (56)
Net cash and cash equivalents disposed (10) (4)
Proceeds not yet received (4) -
Realised foreign exchange - (13)
Net cash inflow from disposals 5(2) 468
(1)
Includes net assets of $79 million no longer consolidated following loss of control of a subsidiary.
(2)
Net cash of $64 million has been received in the year ended 31 December 2009 in respect of deferred consideration for disposals in 2008. This resulted in a total net cash inflow of $69 million from disposals of subsidiaries and businesses in the year ended 31 December 2009.

Disposals of subsidiaries and businesses in the year ended 31 December 2009

The disposals of Lebowa and Booysendal were the only material disposals of a subsidiary or a joint venture in the year. The only material disposals of associates in the year related to the sale of the Group's remaining investments in Tongaat Hulett and Hulamin, which generated a combined net cash inflow of $662 million (net of transaction costs).

Lebowa and Booysendal

During the year ended 31 December 2009 the Group disposed of a 50% interest in the Booysendal joint venture and a 51% interest in Lebowa (and certain other joint venture projects). The disposal of Booysendal to Mvela took place on 24 June 2009. Total consideration was $275 million (excluding transaction and deal facilitation costs), of which $270 million was received in advance in the prior year (invested in unlisted preference shares and an escrow account). Upon completion of the transaction the preference shares were sold whilst $72 million remains in an escrow account pending completion of documentation. The disposal of Lebowa to Anooraq was completed on 30 June 2009 for total consideration of $363 million (excluding transaction and deal facilitation costs). The fair value of the consideration was $247 million (excluding transaction and deal facilitation costs). The Group commenced equity accounting its remaining 49% interest in Lebowa from 30 June 2009. At 31 December 2009 the Group held a 49% interest in Lebowa. These transactions were part of previously announced black economic empowerment deals.

The net asset position at the dates of disposal, together with the resulting profit on disposal and related net cash inflow is shown below:

US$ million 2009
Net assets disposed  
Tangible assets 336
Current assets 11
Current liabilities (24)
Non-current liabilities (64)
Group's share of net assets immediately prior to disposal 259
Less: Retained investments in associates (125)
Net assets disposed 134
Net gain on disposals 316
Net sale proceeds 450
Proceeds received in prior year(1) (270)
Non-cash consideration(2) (212)
Costs accrued 6
Deal facilitation charges 41
Net cash and cash equivalents disposed (9)
Net cash inflow from disposals of Lebowa and Booysendal 6
(1)
A portion of the proceeds was invested in unlisted preference shares when received. Following completion of the transaction these were sold and $200 million is included in the Consolidated cash flow statement within 'Proceeds from sale of financial asset investments'.
(2)
Represents ordinary shares in Anooraq and preference shares in Plateau Resources (Proprietary) Limited.

Disposals of businesses in the year ended 31 December 2008

In the year ended 31 December 2008 Namakwa Sands was the only material disposal of a business. On 1 October 2008 Namakwa Sands was sold to Exxaro Resources Limited for consideration of $330 million including deferred consideration. On 3 November 2008 as part of the same transaction, the Group completed the sale of a 26% interest in both the Black Mountain zinc, lead and copper operation and the Gamsberg zinc project for consideration of $23 million. For further details of the disposal of Namakwa Sands refer to the Group's financial statements for the year ended 31 December 2008.

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Annual Report 2009