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AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2012
25
13. INVESTMENTS IN OTHER ENTITIES (CONTINUED)
JOINT VENTURES
Significant joint ventures comprise:
NAME % OWNED PRINCIPAL ACTIVITY COUNTRY OF
INCORPORATION BALANCE DATE
Pacific Leisure Group Limited 50 Wholesale travel distributor New Zealand 30 June
GROUP
2012
$M
GROUP
2 011
$M
Summarised financial information of joint ventures - 100%:
Current assets 9 -
Non-current assets 1 -
Current liabilities 9 -
Revenue 12 -
Expenses 12 -
ACQUISITIONS
The following entities were acquired or incorporated during the year:
NAME OF ENTITY PRINCIPAL ACTIVITY ACQUISITION
DATE
% OF VOTING
RIGHTS RELATIONSHIP
ANZGT Field Services LLC Engineering services 29 July 2011 51 Subsidiary
Pacific Leisure Group Limited Wholesale travel distributor 20 October 2011 50 Joint Venture
VCubed Pty Limited Online booking exchange 6 October 2011 70 Subsidiary
The Group acquired a 51% share of ANZGT Field Services LLC on 29 July 2011. The Group invested in ANZGT Field Services LLC to
support and enhance its marine and industrial engine business. The company is incorporated in the United States of America.
Pacific Leisure Group Limited was incorporated on 20 October 2011 and commenced trading as a joint venture on 25 November 2011.
The Group invested in the company to expand the Air New Zealand Holiday’s wholesale travel business to support growth of the ancillary
revenue strategy by combining its operations with Australia’s largest domestic wholesaler of Australian travel products and services.
VCubed Pty Limited was previously held as an associate with the Group holding a 26% interest. On 6 October 2011, the Group
increased the shareholding in VCubed Pty Limited as a result of the conversion of 3 million convertible notes. Immediately following
the conversion, the Group subscribed for an additional 2,225,313 Ordinary Shares in the Company under a pro-rata rights issue at a
cost of A$800k. Upon consolidation of VCubed Pty Limited into the Air New Zealand Group goodwill of $2 million was recognised.
The goodwill was subsequently fully impaired.
The acquisitions had the following impact on the Group’s assets and liabilities at the date of purchase:
CONSOLIDATED
FAIR VALUE ON
ACQUISITION
Bank and short term deposits 3
Property, plant and equipment 2
Intangible assets 1
Other liabilities (1)
Net Assets and Liabilities Acquired 5
Transferred from: Investment in other entities (associates) (3)
Goodwill arising on acquisition 2
Non-controlling interest in acquired net assets (2)
Cash Consideration Paid 2
Cash and cash equivalents acquired 3
Net Cash Flow 1
The value of non-controlling interests was determined in VCubed Pty Limited based on a 30% interest, and in ANZGT Field Services
LLC based on a 49% interest, in the fair value of the identified net assets as at the date of acquisition.
Operating revenue (including finance income) of $4,847k and net loss after tax of $1,020k was recognised in respect of these entities in the
Statement of Financial Performance from the date of acquisition. If the acquisitions had been effected at the start of the financial year (1 July
2011) total operating revenue (including finance income) for the Group would have been $4,515 million and net profit after tax of $71 million.
Notes to the Financial Statements (Continued)
As at 30 June 2012