| Notes to the consolidated financial statements Note 27 |
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| 27. |
PUTTABLE NON-CONTROLLING INTEREST LIABILITIES
The acquisition of Guzmán Gastronomía and Cuttings, and Quartiglia Food Service SPA during the year resulted in a put option being agreed with the non-controlling shareholders. The put options entitle the non-controlling shareholders to sell their holdings in the subsidiaries to the group at contracted dates and amounts.
The group has the following put options:
- The non-controlling shareholders in Distrubuzione Alimentari Convivenze SPA (DAC) have the option to put their 40% interest in DAC to the group, using a market valuation formula on or about September 30 2017.
- The non-controlling shareholders in Guzmán have the option to put their 10% interest in Guzmán to the group, using a market valuation formula on or about June 30 2021.
- The non-controlling shareholders in Caterfood have the option to put their 12% interest in Caterfood to the group, using a market valuation formula on or about September 30 2017.
- The non-controlling shareholders in Quartiglia Food Service Spa have the option to put their 40% interest in Quartiglia Food Service Spa to the group, using a market valuation formula on or about September 30 2019.
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| The affect of granting these put options on the group’s results can be summarised as follows: |
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| Balance at beginning of year |
1 168 921 |
|
913 638 |
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| Arising on the granting of put options to non-controlling interests during the year |
119 832 |
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44 700 |
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| Payments made to non-controlling interests during the year |
(39 927) |
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– |
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| Remeasurement of puttable option during the year |
48 076 |
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– |
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| Unwinding of present value discount recognised in the statement of profit or loss |
21 167 |
|
23 085 |
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| Exchange rate adjustments |
(122 873) |
|
187 498 |
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1 195 196 |
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1 168 921 |
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| Long-term portion |
118 028 |
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1 168 921 |
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| Short-term portion |
1 077 168 |
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– |
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| DAC |
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| Discount rate |
1,99% |
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1,99% |
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| Expected settlement date |
September 30 2017 |
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September 30 2017 |
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| Guzmán |
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| Discount rate |
2,0% |
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| Expected settlement date |
June 30 2021 |
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| Caterfood |
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| Discount rate |
5,0% |
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5,0% |
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| Expected settlement date |
September 30 2017 |
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September 30 2017 |
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The effect of discounting the put option for Quartiglia Food
Service Spa was determined as insignificant.
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| Notes to the consolidated financial statements Note 27 |
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