Carphone Warehouse 2015 Annual Report Download - page 128

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Dixons Carphone plc Annual Report and Accounts 2014/15
Financial statements
Notes to the Group financial statements
126
23 Merger and acquisition continued
2013/14 CPW Europe Acquisition
On 26 June 2013 the Group completed the CPW Europe Acquisition for a gross consideration of £500 million, bringing the
Group’s ownership interest to 100%. CPW Europe is one of the largest independent telecommunications specialists in Europe,
operating retail stores, principally under the Carphone Warehouse and Phone House brands, together with well-developed online
propositions. CPW Europe is also increasingly focused on leveraging its assets and expertise to provide services to third parties
through its Connected World Services business.
The primary reasons for the acquisition were to bring a simplified ownership structure, making day-to-day management easier
and the strategic decision-making process more streamlined, and enabling the Group to better leverage CPW Europe’s asset
base and know-how.
c) Fair value of assets and liabilities
The fair values of identifiable assets and liabilities of CPW Europe as at the acquisition date were as follows:
Notes £million
Intangible assets 120
Property, plant and equipment 72
Deferred tax assets 44
Stock 343
Trade and other receivables (i) 1,112
Net cash and cash equivalents 53
Current asset investments 5
Trade and other payables (836)
Corporation tax liabilities (48)
Provisions (ii) (63)
Loans and other borrowings (271)
Finance lease obligations (3)
Identifiable net assets 528
Goodwill (iii) 484
Total consideration 1,012
Satisfied by:
Fair value of existing joint venture investment (iv) 500
Cash (v) 370
Deferred consideration (vi) 50
Equity (vii) 113
Derivative asset (vii) (21)
1,012
Net cash outflow arising on acquisition:
Cash consideration 370
Less net cash and cash equivalents acquired (53)
317