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30 COGECO CABLE INC. 2013 Management's discussion and analysis (“MD&A”)
INVESTING ACTIVITIES
BUSINESS COMBINATIONS IN FISCAL 2013
During the fourth quarter of fiscal 2013, the Corporation adjusted the preliminary allocation of the purchase price of Atlantic Broadband which
increased primarily property, plant and equipment by $96.9 million, deferred tax assets and liabilities by $64.8 million and $28.0 million, respectively,
and decreased intangible assets by $51.7 million and goodwill by $81.0 million. At August 31, 2013, the allocation of the purchase price remains
preliminary pending the final evaluation of certain intangible assets.
In addition, Cogeco Cable adjusted the preliminary allocation of the purchase price of PEER 1, which also remains preliminary at August 31,
2013 pending to the completion of the valuation of the net assets acquired.
The acquisitions were accounted for using the purchase method. The preliminary allocation of the purchase price of Atlantic Broadband and
PEER 1:
As previously reported At August 31, 2013
Atlantic
Broadband PEER 1 Atlantic
Broadband PEER 1 TOTAL
Preliminary Preliminary Preliminary Preliminary
(in thousands of Canadian dollars) $ $ $$$
Consideration
Paid
Purchase of shares 337,779 494,796 337,779 494,796 832,575
Working capital adjustments 5,415 —5,415 — 5,415
Repayment of secured debts and settlement of options outstanding 1,021,854 170,872 1,021,854 170,872 1,192,726
1,365,048 665,668 1,365,048 665,668 2,030,716
Net assets acquired
Cash and cash equivalents 5,480 10,840 5,480 10,840 16,320
Restricted cash — 8,729 —8,729 8,729
Trade and other receivables 9,569 12,772 12,012 12,772 24,784
Prepaid expenses and other 1,370 3,855 1,370 3,855 5,225
Income tax receivable 3,418 672 3,907 2,160 6,067
Other assets — 3,328 —2,462 2,462
Property, plant and equipment 205,353 150,206 302,211 150,013 452,224
Intangible assets 763,084 139,703 711,418 144,671 856,089
Goodwill 603,254 421,986 522,215 412,347 934,562
Deferred tax assets 33,835 8,355 98,592 4,727 103,319
Trade and other payables assumed (26,134) (26,330) (27,620) (26,512) (54,132)
Provisions (721) — (721) — (721)
Income tax liabilities assumed (53) (4,716) ———
Deferred and prepaid revenue and other liabilities assumed (5,254) (3,315) (7,697) (3,388) (11,085)
Long-term debt assumed — (1,735) —(1,735)(1,735)
Deferred tax liabilities (228,153) (58,682) (256,119) (55,273) (311,392)
1,365,048 665,668 1,365,048 665,668 2,030,716