Vodafone 2006 Annual Report Download - page 113

Download and view the complete annual report

Please find page 113 of the 2006 Vodafone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Vodafone Group Plc Annual Report 2006 111
28. Acquisitions
The principal acquisitions made by the Group during the financial year are as follows:
Czech Republic and Romania – ClearWave N.V.
On 31 May 2005, the Group acquired 99.99% of the issued share capital of ClearWave N.V. for cash consideration of £1,905 million. ClearWave N.V. is the parent company of a group
of companies involved in the provision of mobile telecommunications in the Czech Republic and Romania. This transaction has been accounted for by the purchase method of
accounting.
Book Fair value Fair
value adjustments value
£m £m £m
Net assets acquired:
Intangible assets 87 770 857(1)
Property, plant and equipment 562 (23) 539
Inventory 7–7
Trade and other receivables 106 (12) 94
Cash and cash equivalents 65 – 65
Deferred tax liabilities – (129) (129)
Short and long-term borrowings (550) (64) (614)
Current tax liabilities (11) – (11)
Trade and other payables (153) (3) (156)
113 539 652
Minority interests (2)
Asset revaluation surplus(2) (112)
Goodwill 1,367
Total cash consideration (including £9 million of directly attributable costs) 1,905
Net cash outflow arising on acquisition:
Cash consideration 1,905
Cash and cash equivalents acquired (65)
1,840
Notes:
(1) Intangible assets consist of licences and spectrum fees of £461 million and other intangibles of £396 million.
(2) The asset revaluation surplus relates to the recognition of the fair value of intangible assets on the Group’s existing 20.1% stake in MobiFon S.A.
The goodwill is attributable to the profitability of the acquired business and the synergies expected to arise within those businesses after the Group's acquisition of ClearWave N.V.
The acquired entities and percentage of voting rights acquired was as follows:
%
MobiFon S.A. (renamed Vodafone Romania S.A.) 78.99
Oskar Mobil a.s. 99.87
ClearWave N.V. 99.99
MobiFon Holdings B.V. 99.99
Oskar Holdings N.V. (renamed Vodafone Oskar Holdings N.V.) 99.99
Oskar Finance B.V. (renamed Vodafone Oskar Finance B.V.) 99.99
ClearWave Services (Mauritius) Ltd. 99.99
Results of the acquired entities have been consolidated in the income statement from the date of acquisition, 31 May 2005.
Subsequent to the completion of the acquisition on 31 May 2005, a further 0.9% of Vodafone Romania S.A. was acquired for consideration of £16 million.
From the dates of acquisition, these entities contributed a profit of £26 million to the net loss of the Group.
Financials