Vodafone 2003 Annual Report Download - page 109

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Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003 107
Acquisition of additional minority stakes in certain existing subsidiary undertakings
During the year ended 31 March 2003 the Company has directly or indirectly increased its interest in its subsidiary undertakings in Australia, Germany,
Greece, Hungary, Kenya, the Netherlands, Portugal, Spain and Sweden.
These transactions are in line with the Group’s strategy of increasing its shareholding in existing operations where opportunities arise for the creation of
enhanced value for the Company’s shareholders. In respect of Australia, Germany and Spain, management also believe that by obtaining 100% ownership in
these companies, it can more closely align their respective businesses to the Group’s businesses. This benefit is also anticipated in respect of the
Netherlands, Portugal and Sweden following the expected compulsory purchase of the remaining minority interests.
Acquisition of remaining minority interest in Vodafone Spain
On 2 April 2002, the Company acquired a further 2.2% interest in Vodafone Spain for 10.7 billion (£426m), following the exercise of a put option held by
Torreal, S.A, increasing the Group’s interest to 93.8%. The fair value of the share of net assets acquired was £17m, resulting in goodwill of £409m.
On 27 January 2003, the Company completed the acquisition of the remaining 6.2% interest in Vodafone Spain for 12.0 billion following the deemed
exercise of a put option held by Acciona, S.A. and Tibest Cuatro, S.A. under the terms of an agreement originally made in January 2000. Details of the share
of net assets acquired in this transaction are given in the table below:
Local book value Accounting policy
at acquisition conformity Revaluations Fair value
£m £m £m £m
Intangible fixed assets 527 (253)(1) – 274
Tangible fixed assets 1,108 ––1,108
Current assets 352 ––352
Liabilities due within one year (543) 1 – (542)
Liabilities due after more than one year (34) ––(34)
Net assets 1,410 (252) – 1,158
Additional share of net assets acquired 72
Goodwill 1,269
Consideration 1,341
Notes:
(1) Elimination of certain acquired intangibles, including goodwill.
(2) All fair values are provisional and may be subject to adjustment in the year ending 31 March 2004.
Acquisition of other minority stakes in existing subsidiary undertakings
Fair value of
assets/(liabilities) Goodwill
Consideration acquired(1) capitalised
£m £m £m
Vodafone Australia 43 (3) 46
Vodafone Greece 215 65 150
Vodafone Hungary 37 18 19
Vodafone Kenya 7 4 3
Vodafone Netherlands 596 128 468
Vodafone Portugal 520 159 361
Vodafone Sweden 391 116 275
Vodafone Holding GmbH (formerly Mannesmann AG) 273 100 173
2,082 587 1,495
Note:
(1) No adjustments were made for fair values as compared to previously reported values prior to acquisition. All fair values are provisional and may be
subject to adjustment in the year ending 31 March 2004.