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Acquisitions And Dispositions (Tables)
12 Months Ended
Jun. 30, 2021
Net1 Korea [Member]  
Impact Of Deconsolidation And Calculation Of Net Gain Recognized On Deconsolidation
Net1 Korea
March 2020
Proceeds from disposal of Net1 Korea, net of cash disposed
$
192,619
Add: Cash and cash equivalents disposed
23,473
Add: Cash withheld by purchaser to settle South Korean taxes
(1)
21,128
Fair value of consideration received
237,220
Less: carrying value of Net1 Korea, comprising
200,843
Cash and cash equivalents
23,473
Accounts receivable, net
30,467
Finance loans receivable, net
13,695
Inventory
2,377
Property, plant and equipment,
 
net
7,601
Operating lease right of use asset
181
Goodwill (Note 9)
107,964
Intangible assets, net
4,655
Deferred income taxes assets
1,719
Other long-term assets
10,984
Accounts payable
(5,484)
Other payables
(5,523)
Operating lease liability - current
(69)
Income taxes payable
(3,481)
Deferred income taxes liabilities
(1,497)
Operating lease liability – long-term
(112)
Other long-term liabilities
(335)
Released from accumulated other comprehensive income – foreign
 
currency translation reserve (Note 14)
14,228
Settlement assets
44,111
Settlement liabilities
(44,111)
Gain recognized on disposal, before transaction costs and tax
36,377
Transaction costs
(2)
8,644
Gain recognized on disposal, before tax
27,733
Taxes related to gain
 
recognized on disposal
(1)
15,279
Gain recognized on disposal, after tax
$
12,454
(1) Represents taxes
 
paid related to the
 
disposal of Net1 Korea
 
(refer to Note 17).
 
The Company also agreed
 
that the purchaser
withhold potential
 
capital gains
 
taxes of
 
$
19.9
 
million (approximately
 
KRW
23.8
 
billion) and
 
non-refundable securities
 
transaction
taxes of $
1.2
 
million (approximately KRW
1.4
 
billion), for a total withholding of $
21.1
 
million, from the purchase price and pay such
amounts, on behalf of Net1 BV,
 
to the South Korean tax authorities. Net1 BV commenced a process to claim a refund from the South
Korean tax authorities of the potential amount withheld and received this amount of approximately
 
$
20.1
 
million (KRW
23.8
 
billion)
in September
 
2020.
 
The Company
 
included
 
the expected
 
amount to
 
be refunded
 
in the
 
caption Accounts
 
receivable, net
 
and other
receivables in its consolidated balance sheet as of June 30, 2020, refer
 
also to Note 3.
(2) Transaction
 
costs include expenses
 
incurred by the
 
Company of $
7.5
 
million directly related
 
to the disposal
 
of Net1 Korea
and paid in cash and a
 
non-refundable securities transfer tax of approximately $
1.2
 
million which was also withheld from
 
the purchase
price and paid to the South Korean tax authorities directly by the purchaser.
FIHRST [Member]  
Impact Of Deconsolidation And Calculation Of Net Gain Recognized On Deconsolidation
FIHRST
December 31,
2019
Proceeds from disposal of FIHRST,
 
net of cash disposed
$
10,895
Add: Cash and cash equivalents disposed
854
Fair value of consideration received
11,749
Less: carrying value of FIHRST,
 
comprising
1,870
Cash and cash equivalents
854
Accounts receivable, net
367
Property, plant and equipment,
 
net
64
Goodwill (Note 9)
599
Intangible assets, net
30
Deferred income taxes assets
42
Accounts payable
(7)
Other payables
(1,437)
Income taxes payable
(220)
Released from accumulated other comprehensive income – foreign
 
currency translation reserve (Note 14)
1,578
Settlement assets
17,406
Settlement liabilities
(17,406)
Gain recognized on disposal, before tax
9,879
Taxes related to gain
 
recognized on disposal, comprising:
-
Capital gains tax
 
2,654
Release of valuation allowance related to capital losses previously unutilized
(1)
(2,654)
Transaction costs
136
Gain recognized on disposal, after tax
$
9,743
(1) Net1
 
SA recorded
 
a valuation
 
allowance related
 
to capital
 
losses previously
 
generated but
 
not utilized.
 
A portion
 
of these
unutilized
 
capital
 
losses was
 
utilized
 
as
 
a
 
result
 
of
 
the
 
disposal
 
of
 
FIHRST
 
and,
 
therefore,
 
the
 
equivalent
 
portion
 
of the
 
valuation
allowance created was released.
DNI [Member]  
Impact Of Deconsolidation And Calculation Of Net Gain Recognized On Deconsolidation
DNI
Equity method investment
as of June 30, 2019
Total
17% sold
8% retained
interest sold
in May 2019
30%
retained
interest
Attributed to
non-
controlling
interest
Fair value of consideration received
 
$
27,626
$
27,626
$
-
$
-
$
-
Fair value of retained interest in DNI
(1)
74,195
-
14,849
59,346
-
Carrying value of non-controlling interest
 
88,934
-
-
-
88,934
Subtotal
 
190,755
27,626
14,849
59,346
88,934
Less: carrying value of DNI, comprising
 
199,930
38,346
14,540
58,110
88,934
Cash and cash equivalents
 
2,114
354
158
633
969
Accounts receivable, net
24,577
4,116
1,841
7,358
11,262
Finance loans receivable, net
1,030
173
77
308
472
Inventory
 
893
149
66
268
410
Property, plant and equipment,
 
net
 
1,265
212
95
379
579
Equity-accounted investments
 
242
41
19
72
110
Goodwill
113,003
18,924
8,466
33,834
51,779
Intangible assets, net
 
80,769
13,526
6,051
24,183
37,009
Deferred income taxes
 
28
5
2
8
13
Other long-term assets
26,553
4,447
1,989
7,950
12,167
Accounts payable
 
(5,186)
(868)
(389)
(1,553)
(2,376)
Other payables
(2)
(16,484)
(2,760)
(1,235)
(4,936)
(7,553)
Income taxes payable
 
(2,482)
(416)
(186)
(743)
(1,137)
Deferred income taxes
 
(22,083)
(3,698)
(1,654)
(6,612)
(10,119)
Long-term debt
(10,150)
(1,700)
(760)
(3,039)
(4,651)
Released from accumulated other comprehensive
income – foreign currency translation reserve
(Note 14)
 
5,841
5,841
-
-
-
Loss recognized on disposal, before tax,
comprising
 
(9,175)
(10,720)
309
1,236
-
Related to sale of
17
% of DNI
(10,720)
(10,720)
-
-
Related to fair value adjustment of retained
interest in
38
% of DNI
1,545
-
309
1,236
Taxes related to gain
 
recognized on
disposal
(3)
-
505
(3,836)
3,331
Loss recognized on disposal of
discontinued operation, after tax
$
(9,175)
$
(11,225)
$
4,145
$
(2,095)
23.
 
ACQUISITIONS
 
AND
 
DISPOSITIONS
 
(continued)
 
 
Dispositions (continued)
 
2019 Dispositions
 
March 2019 disposal of DNI (continued)
 
(1) The fair value of the retained
 
interest in
38
% of DNI of $
74.2
 
million ($
14.9
 
million plus $
59.3
 
million) was calculated using
the implied fair
 
value of
 
DNI pursuant
 
to the
 
RMB Disposal
 
and was calculated
 
as ZAR
215.0
 
million divided by
7.605235
% multiplied
by
38
%, translated to dollars at the March 31, 2019, rate of exchange.
(2) Other
 
payables include
 
a short-term
 
loan of
 
ZAR
60.5
 
million ($
4.3
 
million, translated
 
at exchange
 
rates applicable
 
as of
June 30, 2019)
 
due to the
 
Company. The short-term loan
 
is included in
 
accounts receivable, net
 
and other receivables
 
on the
 
Company’s
consolidated balance sheet as of June 30, 2019, and
 
was repaid in full on July 31, 2019. Interest on the loan
 
was charged at the South
African prime rate.
(3) Amounts presented are net of a valuation allowance provided. The disposal of DNI resulted in a capital loss for tax purposes
of approximately $
1.5
 
million and the Company provided a valuation allowance of $
1.5
 
million against this capital loss because it did
not have any
 
capital gains to offset
 
against this amount at
 
the time. On an
 
individual basis, the transaction
 
to dispose of
17
% of DNI
resulted in
 
a capital
 
gain of
 
$
0.5
 
million and
 
the re-measurement
 
of the
 
retained
38
% interest
 
has resulted
 
in a
 
capital loss
 
of $
2.0
million ($
5.3
 
million (8%
 
transaction) less
 
$
3.3
 
million (30%
 
transaction)).
 
The valuation
 
allowance of
 
$
1.5
 
million was
 
provided
against the $
5.3
 
million, for a net amount presented in the table above of $
3.8
 
million ($
5.3
 
million less $
1.5
 
million).
CPS [Member]  
Impact Of Deconsolidation And Calculation Of Net Gain Recognized On Deconsolidation
CPS
May
2020
Fair value of consideration received
$
-
Less: carrying value of CPS, comprising
(68)
Cash and cash equivalents
328
Accounts receivable, net
303
Inventory
12
Property, plant and equipment,
 
net
236
Goodwill (Note 9)
-
Deferred income taxes assets (Note 17)
-
Accounts payable
(238)
Other payables
(33,160)
Released from accumulated other comprehensive income – foreign
 
currency translation reserve (Note 14)
32,451
Gain recognized on deconsolidation, before tax
68
Intercompany accounts written off/ provided for
(1)
7,216
Taxes related to loss recognized
 
on deconsolidation, comprising:
-
Capital loss generated upon deconsolidation
(2)
5,399
Valuation
 
allowance related to capital losses generated upon deconsolidation
(2)
(5,399)
Loss recognized on deconsolidation, after tax
$
7,148
(1) Certain of the Company’s
 
subsidiaries had funds due from CPS
 
as of May 31, 2020. The Company
 
wrote these amounts off
as it did not believe that they were recoverable.
(2) The Company recorded a deferred tax asset related to the capital loss generated on deconsolidation of CPS. The Company is
only able
 
to claim
 
the capital loss
 
for South
 
African capital
 
gains tax
 
purposes once
 
it deregisters or
 
disposes of
 
its interest in
 
CPS.
The Company has recorded a valuation allowance related to the full CPS capital loss deferred tax asset recognized because it does not
believe that this capital loss will be utilized in the foreseeable future.