Vodafone 2003 Annual Report Download - page 110

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Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003
108
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Continued
Acquisition of additional stakes in associated undertakings
During the year ended 31 March 2003 the Company has directly or indirectly increased its interest in its associated undertakings in France and South Africa.
Acquisition of additional interests in Cegetel and SFR
On 21 January 2003, the Company announced that its subsidiary, Vodafone Holding GmbH, had completed the acquisition of a further 15% interest in
Cegetel, from SBC Communications Inc., for a cash consideration of $2.27 billion, increasing the Group’s effective interest in Cegetel to 30% and SFR to
approximately 43.9%. The rationale for the transaction was to increase the Company’s economic exposure to SFR, the second largest mobile
telecommunications operator in France, capture a greater share of the benefits that the Company brings to SFR and increase its influence over the strategy
and operations of SFR and Cegetel.
Local book value Accounting policy
at acquisition conformity Revaluations Fair value
£m £m £m £m
Share of fixed assets 469 (156)(1) – 313
Share of current assets 272 (1) – 271
Share of current liabilities (246) (2) – (248)
Share of long term liabilities (158) 3 – (155)
Share of net assets 337 (156) – 181
Goodwill 1,221
Consideration 1,402
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 additional interests in associated undertakings
Fair value of
assets/(liabilities) Goodwill
Consideration acquired(1) capitalised
£m £m £m
Vodacom (South Africa) 78 21 57
Other 17 (1) 18
95 20 75
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.
Other acquisitions
On 29 August 2002, the Group acquired the remaining 50% stake in Vizzavi. The assets acquired in this transaction form an integral part of the Group’s
strategy in providing differentiated services to its customers and are of particular importance to Vodafone live!, the Group’s recently launched consumer
service offering.
26. Acquisitions and disposals continued