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129Qantas |Annual Report 2007
Notes to the Financial Statements
for the year ended 30 June 2007
Qantas Group
Entities acquired during the year 2007
$M
2006
$M
Consideration 34.5 –
Less: cash acquired 2.4 –
Payment for controlled entities, net of cash acquired 32.1 –
Net assets
Receivables 14.5 –
Inventories 12.8 –
Investments accounted for using the equity method (17.6) –
Property, plant and equipment 39.0 –
Goodwill 20.8 –
Payables (15.9) –
Current tax liability (0.5) –
Revenue received in advance (9.2) –
Deferred tax liability (1.8) –
Minority interest (1.2) –
Discount on acquisition (8.8) –
Net asset impact of acquisition 32.1 –
Qantas acquired the remaining 50 per cent of Jet Turbine Services Pty Limited on 15 December 2006 for a purchase price of $12.1 million.
As part of a strategic investment in the Asian freight market, on 30 May 2007 Qantas, via a controlled entity, issued a convertible loan of $22.4 million to
Jupiter Global Limited (Jupiter), for it to acquire the remaining interest in DPEX Transport Group Pte Ltd (DPEX). On the same day, Qantas entered into a
Share Mortgage Agreement and a Call Option Agreement over Jupiter’s interest in DPEX. These agreements, together with the loan funding and Board
control exerted by Qantas, limit the financial and operating control that Jupiter could exert over DPEX. Despite no shareholding in DPEX, Qantas
controlled the entity from 31 May 2007. Qantas has the intention of exercising the option to acquire the remaining shares for $10.7 million on 31 August
2007. This has been included as a capital expenditure commitment in Note 21.
Financing facilities
The total amount of committed financing facilities available to the Qantas Group as at balance date is detailed below:
Qantas Group Qantas
Committed financing facilities 2007
$M
2006
$M
2007
$M
2006
$M
Bank overdraft
Facility available 7.0 7.0 7.0 7.0
Amount of facility used ––––
Amount of facility unused 7.0 7.0 7.0 7.0
Syndicated revolving facility1
Facility available 670.0 770.0 670.0 770.0
Amount of facility used ––––
Amount of facility unused 670.0 770.0 670.0 770.0
Syndicated standby facility2
Facility available 500.0 500.0 500.0 500.0
Amount of facility used ––––
Amount of facility unused 500.0 500.0 500.0 500.0
Commercial paper and medium-term notes
Facility available 1,000.0 1,000.0 1,000.0 1,000.0
Amount of facility used 100.0 120.0 100.0 120.0
Amount of facility unused 900.0 880.0 900.0 880.0
In August 2006, the syndicated revolving facility was reduced and extended, with $335.0 million maturing on 8 February 2011 and $335.0 million maturing on 8 February 2012. This facility was
cancelled effective 28 August 2007.
In August 2006, the syndicated standby facility was extended, with $300.0 million maturing on 8 August 2010 and $200.0 million maturing on 8 August 2011.
The bank overdraft facility held with Commonwealth Bank of Australia covers the combined balances of Qantas and its wholly-owned controlled entities.
Subject to the continuance of satisfactory credit ratings, the bank overdraft facility may be utilised at any time. Commonwealth Bank of Australia may
terminate this facility without notice.
1
2
33. Notes to the Cash Flow Statements continued