Business combinations
for the year ended 31 December 2011

Acquisition of subsidiaries

During the year the group acquired the following additional interests:

        Purchase
  Nature Percentage   consideration
Company acquired of business acquired Interest acquired R000
Spinnaker Shipping and Logistics (Pty) Limited Logistics 50 1 January 2011 458
Nelesco 681 (Pty) Limited Investment 100 31 March 2011 855
Terminal De Carvo da Matola Limitada (Mozambique) Terminals 5 31 December 2011 19 263
Empangeni Milling (Pty) Limited Milling 80 1 October 2011 3 600

Reason for acquisitions

The primary reason for the business acquisitions was to acquire outstanding non-controlling interests in the Terminals division to consolidate Grindrod’s position and to expand Grindrod’s presence into new markets and geographical areas in the Trading businesses.

Impact of the acquisitions on the results of the group

From the dates of their acquisition, the acquired businesses contributed attributable pro t of R5 451 000.

Net assets acquired and the goodwill/intangible assets arising, are as follows:

  Acquirees’ carrying
  amount before
  combination
  at fair value
Net assets acquired R000
Property, plant and equipment 22 838
Intangible assets 1 000
Working capital (28 923)
Cash and bank (2 164)
Non-controlling interests 26 277
Long-term liabilities (14 976)
Business combination reserve 17 685
Deferred taxation 1 957
Total 23 694
Goodwill and intangible assets arising on acquisition 482
  24 176
Contingent purchase consideration (2 683)
  21 493

The goodwill arising on the acquisition of these businesses is attributable to the anticipated pro tability of these businesses and synergies expected.

Disposal of subsidiaries

During the year the group disposed the following interest:

        Disposal
  Nature of Percentage Interest consideration
Company disposed business disposed disposed R000
Grindrod Perishable Cargo Agents Cargo agents 100 30 June 2011 51 750

Reason for disposal

The primary reason for the disposal was to rationalise operations in terms of the group’s long term goals.

  Fair value
Net assets disposed R000
Property, plant and equipment 6 507
Working capital 4 843
Cash and bank 10 157
Goodwill and intangible assets disposed 1 717
Deferred taxation 5 796
Total 29 020
Profit on disposal 22 730
  51 750