for the year ended 30 September

Notes to the annual financial statements

       Group   Company
14.   Other investments and loans including NSN investment                  
  Reunert 1988 Share Purchase Trust loans – at cost1     11,6     12,0     11,6     12,0  
  Other loans – at cost2     32,9     30,8     30,5     30,5  
  Financial instrument – investment in NSN – at fair value3     –     494,3     –     494,3  
  Financial instrument – NSN option – at fair value3     –     299,2     –     299,2  
  Other unlisted investments – at cost     1,6     1,5     1,6     1,5  
  Total investments and loans     46,1     837,8     43,7     837,5  
  Non-current investments and loans     46,1     44,3     43,7     44,0  
  Current investments     –     793,5     –     793,5  
  Directors’ valuation – unlisted investments                  
  NSN option and investment     –     793,5     –     793,5  
  Other unlisted investments     1,6     1,5     1,6     1,5  
1 Loans granted by Reunert in respect of the share option schemes (the schemes)
Option holders are obliged to pay 1 cent per share for shares purchased under the schemes. Thereafter, Reunert may lend the shareholder the remainder of the funds required to purchase the shares at the option price. The loan is granted for a maximum of seven years. No repayment of capital is required before the end of seven years unless the borrower sells the underlying shares or leaves the employ of the group. The loan may be repaid earlier at the option of the borrower. The interest rate applicable to the loan over its life is determined in March and September each year for loans granted during the following six months, based on a formula which takes the last dividend declared prior to granting the option divided by the option price, subject to a maximum of the official interest rate as set by the South African Revenue Services from time to time. The shares remain the property of the share purchase trust until the loan has been fully repaid.
2 These loans do not bear interest and there are no fixed repayment terms. Shares are held as security for R30,0 million of these loans. The value of the shares is considered to exceed the outstanding balance of the loan.
3 As announced on the Securities Exchange News Service (SENS) on 4 February 2011, Reunert exercised its option to sell its investment in NSN and received R793,5 million from the Nokia Siemens Networks group.  
  Reunert 1988 Share Purchase Trust loans   2011  
  Value of loans granted during the year to scheme participants     6,7     0,8  
  Loans to the scheme include loans to Reunert executive directors:          
  Balance at the beginning of the year     0,6     1,2  
  Advances and interest during the year     4,3     0,1  
  Repaid during the year     (0,5)    (0,7) 
  Balance at the end of the year     4,4     0,6