Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 219

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 219
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ordinated in favor of third- party creditors of the underlying companies.

On March 1, 2023, Cartrack acquired76% of the shares and voting interests in Cartrack Swaziland (Pty) Ltd for a consideration of ZAR9,120,000, recognizing a goodwill of
ZAR6.2million (see Note 27).

On April 30, 2024, Karooooo Logistics
(Pty) Ltd repurchased its ordinary shares at a purchase price of ZAR15.2million in accordance with the Companies Act of South Africa
and cancelled the repurchased shares. As a result, the Group’s effective shareholding in Karooooo Logistics (Pty) Ltd increased
from70.1% to74.8% after completion of the repurchase and cancellation.

F-43

27.
ACQUISITION OF SUBSIDIARY

(i)
Cartrack Swaziland (Pty) Ltd

On March 8, 2023, the Group acquired76% of the shares and
voting interests in Cartrack Swaziland (Pty) Ltd, from its existing franchisees for a consideration of ZAR9.12million, recognizing a
goodwill of ZAR6.2million. The goodwill amount is not material to the Group.

The fair values of identifiable net assets and
the cash outflows on the acquisition were as follows:

  Figures in Rand thousands                                                
 ───────────────────────────────────────────────────────────────────────────
  Other non-current assets                                          2,868  
  Cash and cash equivalents                                         3,778  
  Other current assets (excluding cash and cash equivalents)          203  
  Non-current liabilities                                           ( 354  
  Current liabilities                                             ( 2,683  
  Net identifiable assets acquired                                  3,812  
  Add: Goodwill                                                     6,223  
  Less: NCI based on proportionate interest                         ( 915  
  Cash consideration transferred for the business                   9,120  
  Less: cash and cash equivalents acquired                        ( 3,778  
  Less: cash consideration payable                                  ( 240  
  Net outflow of cash                                               5,102  

Goodwill arising on the acquisitions is attributable to
the synergies expected to arise from their integration with the Group, the skilled workforce acquired and the expanded customers. The
primary reason for these acquisitions is to strategically expand its customer base.

F-44

28.
RELATED PARTIES

All related party transactions are