Annual report and accounts 2023 - Flipbook - Page 176
A.G. BARR p.l.c. Annual Report and Accounts 2023
Notes to the Accounts continued
15. Investment in subsidiaries continued
On 20 December 2022 the Group acquired the remaining 38.2% equity stake in MOMA Foods Ltd ("MOMA") for a total cash consideration of £3.4m.
On 6 December 2021, the Group acquired 61.8% of the shares and voting interests in MOMA granting it control. Included in the identifiable assets and liabilities of MOMA
are inputs (inventories, receivables and payables) and an experienced workforce with technical expertise. The Group has concluded that, together, the acquired inputs and
processes are a business that will create value by generating revenue in the growing plant-based drinks category, supported by the Group's brand building capability.
The value of the identifiable assets and liabilities of MOMA at the date of acquisition were:
£m
Property, plant and equipment
Intangible assets
Inventory
Trade receivables
Prepayments
Cash and cash equivalents
Trade payables
Accruals
Loans
0.2
8.4
0.6
1.0
0.1
0.4
(0.7)
(0.7)
(0.3)
Total identifiable net assets acquired
9.0
Goodwill
Value on acquisition
Non-controlling interest
1.0
10.0
(3.8)
Total consideration
6.2
Represented by:
Cash
6.2
As part of the arrangements with non-controlling shareholders of MOMA, the Group issued put options to the sellers to sell the remaining shares and simultaneously the
seller issued call options to the Group to purchase the remaining shares. At the acquisition date, the Group recognised a put liability of £8.6m recorded at a present value of
£5.0m being the estimated redemption value, using forecast revenue of MOMA, discounted at a post-tax rate of 18%.
The put liability was derived from an internal valuation, using forecast revenue over the exercise period, discounted at a post-tax rate of 18% and assumed the option was
exercised in full in the third year following the date of acquisition. As the Group now owns 100% of MOMA the put liability has been released in the year to 29 January 2023.
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