BT 2002 Annual Report Download - page 100

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18. Acquisitions and disposals continued
a
On 18 April 2001, the group took full control of O2 Communications (Ireland) (formerly Esat Digifone). Under an agreement
made in 2000 the group purchased from Telenor its 49.5% interest in Esat Digifone for £869 million. Goodwill arising on the
acquisition was being amortised over 20 years until it was demerged with mmO2.
Book and
fair values
£m
Minority interest (7)
Group's share of original book value of net liabilities (7)
Goodwill 876
Total cost 869
b
Other subsidiary companies
During the year ended 31 March 2002, the acquisition of interests in other subsidiary companies and the consideration
given comprised:
Total
£m
Fixed assets 3
Current assets 5
Current liabilities (6)
Group's share of original book value of net assets and fair value to group 2
Goodwill 33
Total cost 35
c
On 20 February 2001, the group took full control of Viag Interkom GmbH & Co (Viag Interkom). Under an agreement
announced in August 2000, the group purchased from E.ON its 45% interest in Viag Interkom by means of a put option
priced at e7.25 billion (£4,562 million). In January 2001, the group acquired the 10% interest in the company previously
owned by Telenor for e1.6 billion (£1,032 million). As part of the transactions, the group repaid loans due by Viag Interkom
to E.ON and Telenor totalling £3,165 million. The total cash consideration amounted to £8,770 million, including £11 million
expenses.
Book and
fair values
£m
Fixed assets 6,728
Current assets 619
Current liabilities (585)
Long-term liabilities (2,505)
Group's share of original book value of net assets 4,257
Goodwill 4,992
Total cost 9,249
Since the acquisition was made towards the end of the year ended 31 March 2001, the fair values of the identi®able assets
and liabilities were determined on a provisional basis which has now been con®rmed. Goodwill arising on acquisition of Viag
Interkom and remaining in the group was being amortised over 20 years until it was partially demerged with mmO2 and the
remaining balance was written off in the 2002 ®nancial year.
The consolidated results of Viag Interkom for the year ended 31 December 2000 and for the period from 1 January 2001 to
19 February 2001, on the basis of its accounting policies, are summarised as follows:
Period
1 January to
19 February
2001
£m
Year ended
31 December
2000
£m
Group turnover 216 856
Total operating loss (108) (686)
Loss before taxation (160) (784)
Loss for the ®nancial period (160) (784)
Notes to the financial statements
BT Group Annual Report and Form 20-F 2002 99