Exxaro report selector 2019

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Exxaro Resources Limited
Group and company annual financial statements for the year ended 31 December 2019

Currently viewing: CHAPTER 8 / 8.3 Loss on loss of control of subsidiary and gain on disposal of Associate

8.3 LOSS ON LOSS OF CONTROL OF SUBSIDIARY AND GAIN ON DISPOSAL OF ASSOCIATE

  Group  
For the year ended 31 December 2019 Tumelo
subsidiary1
Rm
Tronox UK
associate2
Rm
 
Consideration:      
– Cash     1 597    
– Loan to associate  142       
Total disposal consideration  142  1 597    
Carrying amount of net assets/investment sold  (177) (1 327)   
– Property, plant and equipment  (21)      
– Investment in associate3  (92) (1 327)   
– Financial assets at amortised cost  (12)      
– Deferred tax asset  (10)      
– Other current assets  (1)      
– Provisions       
– Deferred tax liability  27       
– Trade and other payables       
– Other current liabilities       
– Non-controlling interests  (82)      
(Loss) on loss of control/gain on disposal4  (35) 270    
1 On 1 January 2019, Exxaro lost control over the management function of Tumelo. This resulted in Tumelo being accounted for as an associate at an initial carrying value of nil.
2 Relates to the redemption of membership interest in Tronox UK
3 The carrying amount reduced during the year by R460 million as a result of a dividend distribution received from Tronox UK.
4 After tax of nil.
  Company  
For the year ended 31 December 2019 Tronox UK
associate1
Rm
 
Consideration:    
– Cash  1 597    
Total disposal consideration  1 597    
Carrying amount of investment sold  (1 091)   
– Investment in associate  (1 091)   
Gain on disposal2  506    
1 Relates to the redemption of membership interest in Tronox UK.
2 After tax of nil.