29 Related party disclosures
The Group has a number of transactions and relationships with related parties, as defined in IAS 24 (Related Party Disclosures), all of which are undertaken in the normal course of business.
Transactions and balances with associates relate mainly to the sale and purchase of cigarettes and tobacco leaf. Amounts receivable from associates in respect of dividends included in the table below were £68 million (2008: £72 million). The Group’s share of dividends from associates included in other net income in the table below, was £331 million (2008: £326 million). Legal fees recovered from Reynolds American Inc. included in other net income amounted to £nil (2008: £1 million).
In 2008, proceeds of £41 million were received from the Group’s participation in the Reynolds American Inc. share buy-back programme (note 25), and a further £1 million from the repurchase of shares by Procesadora Unitab.
|Transactions|| || |
|– revenue||47 ||29 |
|– other net income||329 ||325 |
|Amounts receivable at 31 December||78 ||79 |
|Amounts payable at 31 December||(34)||(59)|
As discussed in note 3(h) and note 26, in 2008 the Group realised a gain of £139 million on the disposal of its 32.35 per cent holding in the non-cigarette and snus businesses of ST. The gain on disposal is not included in the above table.
As shown in note 20, a capital injection was made into British American Tobacco (Algérie) S.P.A. where the minority shareholder SOCALTA (Societe Algerienne de Trading Alimentaire) contributed £16 million. This minority contribution was assisted by a loan from another Group subsidiary of £4 million.
The key management personnel of British American Tobacco consist of the members of the Board of Directors of British American Tobacco p.l.c. and the members of the Management Board. No such person had any material interest during the year in a contract of significance (other than a service contract) with the Company or any subsidiary company. The term key management personnel in this context includes the respective members of their households.
|The total compensation for key management personnel, including Directors, was:|| || |
|– salaries and other short-term employee benefits||18 ||18 |
|– post-employment benefits||3 ||3 |
|– share-based payments||9 ||7 |
| ||30 ||28 |
There were no other long-term benefits applicable in respect of key personnel other than those disclosed in the Remuneration report in the Annual Report.
In November 2008, the controlling companies of R&R Holdings S.A., Richemont and Remgro, distributed the 30 per cent of the shares of British American Tobacco that they indirectly held to their shareholders. A new subsidiary of Richemont and Remgro, Reinet Investments S.C.A, now owns 4 per cent (2008: 4 per cent) of the shares of British American Tobacco, while the rest are owned by non-related individuals and institutions.