Tesco 2008 Annual Report Download - page 71

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Tesco PLC Annual Report and
Financial Statements 2008 69
Note 13 Group entities continued
(a) Disposals of associates
There were no disposals of associates in 2007/8. Disposals of associates in 2006/7 were as follows:
Greenergy
Groceryworks Fuels Limited Total
£m £m £m
Consideration received/value of assets exchanged 35 4 39
Carrying value of investment disposed of (13) (1) (14)
Profit on sale of investments in associates 22 3 25
The investment in Groceryworks was sold to its parent company, Safeway Inc.
During the year ended 24 February 2007, the Group’s investment in Greenergy Fuels Limited was subject to an exchange transaction, whereby the
Group gave up its investment in Greenergy Fuels Limited and received a 21.3% investment in Greenergy Fuels Limited’s parent company, Greenergy
International Limited.
The transaction was treated as an exchange of fair values and the profit on sale recognised on this transaction represents the difference between 3.7%
of the net assets of Greenergy Fuels Limited given up and 21.3% of the additional net assets of Greenergy International Limited acquired. Overall, the
transaction was cash neutral.
(b) Transferred to subsidiary undertakings
During the year ended 23 February 2008, the Group purchased additional share capital in Nutri Centres Limited, making the company a subsidiary entity
which has been consolidated within the Group results from the date of acquisition onwards.
During the year ended 24 February 2007, the Group purchased additional share capital in three of its joint ventures, namely dunnhumby Limited,
Tesco Home Shopping and Hymall, making them subsidiary entities which have been consolidated within the Group results from the date of
acquisition onwards.
Significant joint ventures
The Group’s principal joint ventures are:
Share of issued share Country of incorporation
capital, loan capital and and principal country
Business activity debt securities of operation
Tesco Personal Finance Group Limited Personal Finance 50% Scotland
Tesco Mobile Limited†Telecommunications 50% England
Shopping Centres Limited Property Investment 50% England
BLT Properties Limited Property Investment 50% England
Tesco British Land Property Partnership†Property Investment 50% England
Tesco Red Limited Partnership†Property Investment 50% England
Tesco Aqua Limited Partnership†Property Investment 50% England
Arena (Jersey) Management Limited†Property Investment 50% Jersey
The Tesco Property (No. 2) Limited Partnership†Property Investment 50% Jersey
†Held by an intermediate subsidiary.
The accounting period ends of the joint ventures consolidated in these financial statements range from 31 December 2007 to 29 February 2008.
Accounting period end dates different from those of the Group arise for commercial reasons and depend upon the requirements of the joint venture
partner as well as those of the Group.