BT 2000 Annual Report Download - page 74

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16. Intangible assets (continued)
During the year ended 31 March 2000, the acquisition of the interests in subsidiary companies and the consideration
given comprised:
Cellnet
Group(a)
£m
Esat(b)
£m
Yellow
Book
USA(c)
£m
Syntegra
(USA)(d)
£m
Other
£m
Total
£m
Minority interest 176 (2) ± 1 40 215
Fixed assets 428 6 12 157 603
Current assets 137 49 48 68 302
Current liabilities (137) (21) (88) (108) (354)
Long-term liabilities (487) ± ± (62) (549)
Provisions for liabilities and charges ± ± ± (2) (2)
Group share of original book value of net assets (liabilities) 176 (61) 34 (27) 93 215
Fair value adjustment to achieve consistency of accounting
policies ± (115) ± ± ± (115)
Other fair value adjustments ± (69) ± ± ± (69)
Fair value to the group 176 (245) 34 (27) 93 31
Goodwill 2,997 1,765 381 240 316 5,699
Total cost 3,173 1,520 415 213 409 5,730
Consideration:
Cash 3,014 179 401 213 327 4,134
Deferred ± 1,167 ± ± 45 1,212
Loan notes 2000/2009 159 ± ± ± ± 159
Other loan notes ± 174 14 ± 14 202
Carrying value of associate wholly acquired ± ± ± ± 23 23
Total 3,173 1,520 415 213 409 5,730
(a) On 10 November 1999, BT acquired the 40% interest in Cellnet Group Limited, its mobile cellular phone operator, that
it did not already own for »3,150 million, excluding »23 million expenses.
The consolidated results of Cellnet Group Limited for the years ended 31 March 1999 and 2000 are summarised as follows:
2000
£m
1999
£m
Group turnover 2,435 1,410
Total operating pro®t 97 165
Exceptional items included in total operating pro®t:
Impairment of analogue equipment and network closure costs (note 4) (47) ±
Pro®t before taxation 49 117
Taxation (23) (39)
Minority interests (2) ±
Pro®t for the ®nancial year 24 78
(b) At the end of March 2000, BT acquired control of Esat Telecom Group plc (Esat), a leading telecommunications
operator in Ireland. An interest comprising 70% of the company was acquired under a public o¡er, the consideration for
which passed in April 2000. In January 2000, BT acquired 13% of the company from its then chairman and chief executive
for US$287 million (»174 million) and a further 12% interest from a major shareholder for US$271 million (»179 million).
Of the total consideration, »179 million was settled in cash in January 2000, »1,029 million in cash in April 2000 and »187
million was satis¢ed by loan notes repayable at the option of the holder not later than 30 April 2005. The balance of the
consideration covers the remaining interest being compulsorily acquired and compensation to employee share option
holders.
Annual report and Form 20-F 73