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NOTESTOTHE SUMMARISED ANNUAL FINANCIAL
STATEMENTS
(CONTINUED)
FORTHEYEAR ENDED 31 MARCH
Long-term liabilities
2017
R’000
2016
R’000
Variable rate, cumulative redeemable preference shares with
issue price of R10 each
135
135
Balance at 31 March
135
135
At 31 March 2017: 13 501 (2016: 13 501) preference shares
were in issue
Preference share liability reconciliation
Opening balance at 1 April
135
135
Closing balance at 31 March
135
135
In accordance with the preference share subscription agreement, these preference shares bore
interest at 75% of the prime rate, compounded monthly, until such a time that the preference shares
remaining are less than or equal to the preference threshold, which was reached at 3 September 2014.
Once the threshold has been met, the preference shares do not bear interest. Further to this, the term
of the remaining preference shares was extended at the discretion of the preference shareholders.
These preference shares are held by MIH Holdings Proprietary Limited.The carrying amount at
amortised cost approximates the fair value of these instruments.
Phuthuma Nathi Investments (RF) Limited
/
Integrated annual report 2017
93
v
FINANCIAL REVIEW
(CONTINUED)