BT 2002 Annual Report Download - page 104

Download and view the complete annual report

Please find page 104 of the 2002 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

18. Acquisitions and disposals continued
p
On 16 August 1999, the group acquired a 30% interest in an AT&T subsidiary undertaking which held a 31% interest in
AT&T Canada Corporation, a ®xed network telecommunications company operating in Canada. The resulting economic
interest of 9.3% cost £360 million. On 31 March 2001, the 9.3% interest in AT&T Canada had a market value equivalent to
£267 million (2000 ± £477 million), compared with a carrying value of £352 million (2000 ± £345 million). From 1 April 2000,
the group decided it no longer exercised signi®cant in¯uence over this company and the investment was reclassi®ed as an
other investment. On 1 April 2002, as part of the Concert global joint venture unwind, BT ceased to have any interest in
AT&T Canada.
On 16 August 1999, the group acquired jointly with AT&T an approximate 33% interest in Rogers Wireless Inc.
(formerly Rogers Cantel Mobile Communications Inc.), a cellular mobile phone company operating in Canada. The resulting
economic interest of approximately 17% cost £299 million. On 31 March 2001, the 17% interest in Rogers Wireless Inc.
had a market value of £191 million (2000 ± £520 million), compared with a carrying value of £285 million
(2000 ± £298 million). Goodwill arising on the acquisition of Rogers Wireless was being amortised over 20 years until July
2001, when the group sold this interest.
On 10 May 1999, the group acquired a 20% interest in SmarTone Mobile Communications Limited, a cellular mobile
phone company operating in Hong Kong. On 31 March 2001, the 20% interest in SmarTone Mobile Communications
Limited had a market value of £107 million (2000 ± £277 million) compared with a carrying value of £243 million
(2000 ± £230 million). Goodwill arising on the acquisition of SmarTone was being amortised over 20 years until it was
written off in the 2002 ®nancial year.
Disposal of subsidiaries and the demerger of mmO2
Year ended 31 March 2002
mmO2
q
£m
Yell
r
£m
Other
£m
Total
£m
Net assets demerged or disposed of:
Fixed assets 20,459 467 211 21,137
Stocks 109 98 ± 207
Debtors 1,381 400 19 1,800
Cash 121 21 7 149
Creditors: amounts falling due within one year (1,790) (153) (46) (1,989)
Creditors: amounts falling due after more than one year ± (10) ± (10)
Provisions (229) ± ± (229)
Intercompany loans (561) ± ± (561)
Goodwill previously written off to reserves ± 9 44 53
Net assets disposed of 19,490 832 235 20,557
Pro®t (loss) on disposal ± 1,128 (116) 1,012
Consideration 19,490 1,960 119 21,569
Cash ± 1,859 119 1,978
Demerger distribution 19,490 ± ± 19,490
Loan notes ± 60 ± 60
Other ± 41 ± 41
Total 19,490 1,960 119 21,569
In addition £9 million deferred consideration was received during the year ended 31 March 2002 in settlement of the
disposals on 18 July 1999 of BT New Towns Cable and Westminster Cable Limited.
Notes to the financial statements
BT Group Annual Report and Form 20-F 2002 103