Barclays 2008 Annual Report Download - page 253

3
Financial statements
39 Acquisitions (continued)
(c) Expobank
On1st July 2008, the Group acquired 100% of the ordinary shares of Expobank, a Russian bank.
The assets and liabilities of the Russian bank, Expobank before and after the acquisition, details of the purchase price and the goodwill arising were
as follows:
Carrying
value pre- Fair value Fair
acquisition adjustments values
£m £m £m
Assets
Cash and balances at central banks 73 – 73
Trading portfolio assets 52 – 52
Loans and advances to customers 446 5 451
Other assets 9–9
Intangible assets – 45 45
Property, plant and equipment 28 – 28
Total assets 608 50 658
Liabilities
Deposits from banks 71 – 71
Customer accounts 318 – 318
Debt securities in issue 103 – 103
Other liabilities 16 – 16
Total liabilities 508 – 508
Net assets acquired 100 50 150
Goodwill 243
Total 393
Acquisition cost
Cash paid 386
Attributable costs 7
Total consideration 393
The excess of proceeds over the net assets acquired has generated goodwill of £243m and is attributable to the operational synergies and earnings
potential expected to be realised over the longer term.
The results of the business’s operations have been included from 1st July 2008 and contributed £13m loss to the consolidated profit before tax.
Cash outflows in respect of acquisitions
The aggregate net outflow of cash from the acquisition of the above Group businesses and entities was as follows:
2008
£m
Cash consideration on acquisitions 2,070
Cash and cash equivalents acquired (1,109)
Cash outflow on acquisition 961
Cash paid in respect of acquisition of shares in Barclays Global Investors UK Holdings Limited 157
Increase in investment in subsidiaries 157
Barclays PLC Annual Report 2008 251