BT 2006 Annual Report Download - page 89

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12. ACQUISITIONS continued
e
Albacom
On 4 February 2005 the group acquired the 74% interest in Albacom SpA (Albacom) not already held for total consideration of
£131 million, including deferred consideration of £38 million and acquisition costs of £5 million. The deferred consideration is
dependent upon the financial performance of Albacom in the 2009 financial year and the minimum payable is £38 million. At
31 March 2005, the fair value adjustments relating to the acquisition of Albacom were provisional, however no further changes to
these adjustments were necessary when the fair values were finalised in the 2006 financial year. The net assets acquired in the
transaction, and the goodwill arising, were as follows:
Fair value
Book value adjustments Fair value
£m £m £m
Intangible assets 190 – 190
Property, plant and equipment 188 (11) 177
Inventories 5 – 5
Receivables 206 – 206
Payables (301) (14) (315)
Provisions and non current liabilities (139) – (139)
Minority interest (2) – (2)
Group’s share of original book value and fair value of net assets 147 (25) 122
Goodwill 9
Total consideration 131
The residual excess over the net assets acquired was recognised as goodwill. Goodwill comprises principally the assembled work
force, expected cost savings and synergies.
f
Other
During the year ended 31 March 2005 the group acquired a number of other smaller subsidiary undertakings and businesses,
principally BIC Systems Group Limited. The combined net assets acquired in the transaction and goodwill arising in respect of
these acquisitions were as follows:
Fair value
Book value adjustments Fair value
£m £m £m
Intangible assets – 66
Receivables 3 – 3
Cash and cash equivalents 5 – 5
Payables (5) – (5)
Group’s share of original book value and fair value of net assets 3 6 9
Goodwill 10
Total consideration 19
Notes to the consolidated financial statements BT Group plc Annual Report and Form 20-F 2006 87