Carphone Warehouse 2015 Annual Report Download - page 126

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Dixons Carphone plc Annual Report and Accounts 2014/15
Financial statements
Notes to the Group financial statements
124
23 Merger and acquisition
2014/15: All-share merger of Dixons and Carphone
On 6 August 2014, the Group completed an all-share merger of Dixons and Carphone after which the shareholders of Dixons
and Carphone each held 50% of Dixons Carphone on a fully diluted basis taking into account existing share options and award
schemes for both companies.
Under the terms of the Merger, Dixons shareholders received 0.155 of a new Dixons Carphone Share in exchange for each
Dixons share. In accordance with the criteria in IFRS 3 ‘Business Combinations’ it has been determined that Carphone
acquired Dixons.
The merged entity creates a leader in European consumer electricals, mobiles, connectivity and related services. The directors
believe that the Merger will deliver significant value to shareholders through a combination of enhanced commercial
opportunities, operating synergies and growth opportunities. The integration of the two businesses is being managed by a
dedicated integration team, bringing together the best relevant capabilities of both businesses, with the aim of facilitating a
smooth integration.
a) Fair value of assets and liabilities
The provisional fair values of identifiable assets and liabilities of Dixons as at the acquisition date were as follows:
Note £million
A
ssets
Intangible assets 403
Property, plant & equipment 266
Trade and other receivables (i) 305
Deferred tax assets 190
Inventory 789
Income tax receivable 20
Short term investments 1
Cash and cash equivalents 339
A
ssets held for sale (ii) 30
Total assets 2,343
Liabilities
Loans and other borrowings (289)
Finance lease obligations (93)
Retirement benefit obligations (432)
Trade and other payables (1,949)
Income tax payable (49)
Provisions (iii) (58)
Deferred tax liabilities (90)
Liabilities directly associated with assets classified as held for sale (30)
Total liabilities (2,990)
Total fair value of identifiable net liabilities acquired (iv) (647)
Provisional goodwill (v) 2,629
Total consideration – fair value of ordinary shares issued (vi) 1,982