24. Acquisitions and disposals 2007 The group made the following acquisitions of subsidiary undertakings in the year ended 31 March 2007 which were accounted for on an acquisition basis: i. On 7 July 2006 Investec Bank (UK) Limited ("IBUK") acquired the entire share capital of N.M. Rothschild Australia Holdings Pty Limited and its subsidiary, NM Rothschild and Sons (Australia) Limited ("Rothschild") resulting in negative goodwill of £10 680 000 which has been released to the income statement. At acquisition, Rothschild changed its name to Investec Australia Limited ("IAL") and on 29 September 2006 all the assets and liabilities of IAL were transferred to IBUK's subsidiary, Investec Bank (Australia) Limited (IBAL). In the period between acquisition and the transfer of all the assets and liabilities IAL the profit made of acquired company was £12 000. The acquisition was satisfied by the payment of cash. Assets and liabilities at the date of acquisition and total consideration paid are disclosed in the table below. £’000
Book value
Fair value
Fair values
at date of
adjustment
at date of
acquisition
acquisition
 Cash and balances at central banks
10 582
-
10 582
 Loans and advances to banks
31 950
-
31 950
 Trading securities
434 309
-
434 309
 Derivative financial instruments
101 047
-
101 047
 Loans and advances to customers
207 341
(7 725)
199 616
 Deferred taxation assets
1 187
1 725
2 912
 Other assets
3 063
-
3 063
 Property and equipment
555
(140)
415
790 034
(6 140)
783 894
 Deposits by banks
77 050
-
77 050
 Derivative financial instruments
73 191
-
73 191
 Customer accounts
497 024
-
497 024
 Other liabilities
6 113
1 953
8 066
 Subordinated liabilities
40 634
-
40 634
694 012
1 953
695 965
 Net assets / fair value of net assets
96 022
(8 093)
87 929
 Negative goodwill arising on acquisition
(10 680)
 Fair value of consideration
77 249
 ii. In May 2006, Global Ethanol Holdings Limited ("GEHL"), acquired a 60% holding in Midwest Grain Processors LLC, a company engaged in the production and marketing of ethanol in the USA. The acquisition was financed by the issue of equity and shareholder loans which resulted in the Investec group having a 71.4% holding in GEHL. During the year GEHL has also completed a small number of acquisitions. For the period since Acquisition GEHL contributed £1 646 000 to the group’s profit before tax. iii. On 19 July 2006, IBUK acquired a 99.73% holding in IdaTech LLC, a company engaged in the development of fuel processors and fuel call systems in the USA. The acquisition was satisfied by the payment of cash. For the period since Acquisition, the loss before tax included in the group’s results was £2 329 000. iv. On 17 October 2006, Investec Property Group Limited (a subsidiary of Investec Limited) acquired a 100% holding in Spire Property Services (Pty) Ltd, a company engaged in the management of properties. The acquisition was satisfied by the payment of cash. Notes to the financial statements (continued)