NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 1

1. DISPOSAL OF BUSINESS AND ACQUISITION OF ADDITIONAL INTERESTS IN AYRTON
  1.1 DISPOSAL OF BUSINESS
    On 11 May 2015 the Group disposed of its 51% holding in Bioswiss Proprietary Limited (Bioswiss). Refer to note 26.5 for cash flow on disposal.
  1.2 ACQUISITION OF ADDITIONAL SHARES IN AYRTON
    On 1 April 2010, Adcock Ingram International Proprietary Limited, a wholly-owned subsidiary of Adcock Ingram Holdings Limited, acquired a 65.59% stake in a listed Ghanaian pharmaceutical company, Ayrton Drug Manufacturing Limited (Ayrton) for R121 million, to establish a presence in West Africa. The fair value of the net assets of Ayrton (excluding goodwill on the original acquisition) was R63 million. Goodwilll, intangible assets and certain plant and equipment were subsequently impaired.

Following the initial transaction, Adcock Ingram International Proprietary Limited acquired the following additional shares in Ayrton:

  % shares Cash
consideration
paid to non-
controlling
shareholde		 Carrying
value		 Recognised in
retained
earnings
within
equity		  
On acquisition 65.59 33 636 33 636 –  
2011 5.76 10 336 5 294 5 042  
2012 6.79 11 060 8 912 2 148  
2013 0.18 342 223 119  
2014 0.14 241 175 66  
2015 0.11 132 101 31  
2016 * 2 1 1  
Total 78.57 55 749 48 342 7 407  
* < 0.01
Refer to note 2

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 1