Tiscali 2001 Annual Report Download - page 37

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29
United Kingdom
In July 2001, LibertySurf Group SA recapitalised Liberty Surf UK Ltd by writing off receivables
amounting to EUR 34.3mn. Liberty Surf UK Ltd then sold its going concern to Tiscali UK Ltd
(formerly World Online UK Ltd) for EUR 4.7mn.
A similar transaction involved Liberty Surf Communications Ltd, which was recapitalised by
Liberty Surf Group SA by writing off receivables amounting to EUR 33.9mn and which
subsequently sold its going concern to Tiscali UK Ltd (formerly World Online UK Ltd) for
about EUR 3mn.
World Online Ltd and Springboard Internet Services Ltd (LineOne) also sold their going
concern to Tiscali UK Ltd during 2001.
Spain
During 2001, Freegames SL and Freelosophy SL, two subsidiaries of Tiscali
Telecomunicaciones SA were wound up. In order to recapitalise Tiscali Telecomunicaciones
SA, Tiscali SpA picked up its debt of EUR 1.4mn to Tiscali Finance SA, and wrote off trade
receivables of EUR 352,000. In view of the forthcoming sale of Tiscali Telecomunicaciones
SA, planned for 2002, the book value of this shareholding was aligned to the planned
selling price of EUR 125,000 by effecting a write-down of about EUR 2.3mn. The overall
economic impact of Tiscali Telecomunicaciones SA on the Parent Company's financial
statements as a result of these operations was EUR 3.7mn.
Again in 2001, World Online International BV transferred 49.2% of World Online Spain SA
to World Internet Online SL (re-named Tiscali España SLU).
Note also that during 2001 the German, Swedish, Austrian, Swiss and Finnish subsidiaries
of SurfEU.com Ltd were transferred to other Tiscali Group Companies operating in those
countries.
Specifically, SurfEU Deutschland GmbH was transferred to Tiscali Deutschland GmbH, and
subsequently by the latter to Tiscali GmbH; SurfEU Austria was transferred to World Online
Austria GmbH; SurfEU OY to Tiscali International BV; SurfEU Switzerland AG to World
Online Holding SA, and SurfEU Sverige AB to World Online AB.
In December 2001, the Board of Directors of SurfEU.com Ltd distributed a bonus dividend
of EUR 8.5mn, consisting mainly of receivables from the above-mentioned sales. It also
approved the Company's winding up.
The book value of the shareholding in SurfEU.com Ltd entered in Tiscali SpA's financial
statements was written down by about EUR 18mn, in order to align it with the total
amounts of the transferred Companies' sale values.
Report on Operating Performance