Vodafone 2014 Annual Report Download - page 162

28. Acquisitions and disposals (continued)
Kabel Deutschland Holding AG (‘KDG’)
On 30 July 2013 the Group launched a voluntary public takeover offer for the entire share capital of KDG and on 13 September 2013 announced
that the 75% minimum acceptance condition had been met. The transaction completed on 14 October 2013 with the Group acquiring 76.57%
of the share capital of KDG for cash consideration of £4,855 million. The primary reason for acquiring the business was to create a leading integrated
communications operator in Germany, offering consumer and enterprise customers unied communications services.
The results of the acquired entity have been consolidated in the Group’s income statement from 14 October 2013 and contributed £735 million
of revenue and a loss of £210 million to the prot attributable to equity shareholders of the Group during the year.
The provisional purchase price allocation is set out in the table below:
Fair value
£m
Net assets acquired:
Identiable intangible assets11,641
Property, plant and equipment 4,381
Investment in associated undertakings 8
Inventory 34
Trade and other receivables 154
Cash and cash equivalents 619
Current and deferred taxation (1,423)
Short and long-term borrowings (2,784)
Trade and other payables (1,190)
Provisions (63)
Post employment benets (62)
Net identiable assets acquired 1,315
Non-controlling interests2(308)
Goodwill33,848
Total consideration44,855
Notes:
1 Identiable intangible assets of £1,641 million consisted of customer relationships of £1,522 million, brand of £18 million and software of £101 million .
2 Non-controlling interests have been measured using the net fair value of the identiable assets acquired, liabilities and contingent liabilities assumed.
3 The goodwill is attributable to the expected protability of the acquired business and the synergies expected to arise after the Group’s acquisition of KDG.
4 Transaction costs of £17 million were charged in the Group’s consolidated income statement in the year ended 31 March 2014
Vodafone Omnitel B.V. (‘Vodafone Italy’)
On 21 February 2014, the Group acquired a 100% interest in Vodafone Italy as part of the disposal of the Group’s interests in Verizon Wireless for
consideration of £7,121 million, having previously held a 76.9% stake in Vodafone Italy which was accounted for as a joint venture.
The results of the acquired entity have been consolidated in the Group’s income statement from 21 February 2014 and contributed £522 million
of revenue and £5 million of prot attributable to equity shareholders of the Group during the year.
The provisional purchase price allocation is set out in the table below:
Fair value
£m
Net assets acquired:
Identiable intangible assets13,000
Property, plant and equipment 2,017
Inventory 89
Trade and other receivables (net of provisions of £285 million) 1,745
Current and deferred taxation (155)
Short and long-term borrowings (19)
Trade and other payables (2,415)
Provisions (96)
Post employment benets (52)
Net identiable assets acquired 4,114
Goodwill23,007
Total consideration 7,121
Notes:
1 Identiable intangible assets of £3,000 million consisted of customer relationships of £1,319 million, licences and spectrum of £1,319 million and software of £362 million.
2 The goodwill is attributable to the expected protability of the acquired business and the synergies expected to arise after the Group’s acquisition of Vodafone Italy.
Vodafone Group Plc
Annual Report 2014160
Notes to the consolidated nancial statements (continued)