Telstra 2007 Annual Report Download - page 185

Telstra Corporation Limited and controlled entities
182
Notes to the Financial Statements (continued)
(d) Acquisitions (continued)
CSL New World Mobility Group (continued)
During fiscal 2007, we were required to make a cash payment of $21
million to NWMHL following finalisation of the subscript ion amount
which represent ed an adjustment to the $44 million cash received in
fiscal 2006. In accordance with the terms of the merger, this
adjustment was primarily based on the final working capit al position
of the New World Mobility Group at the completion date.
The net impact of the merger on the Telstra Group results, including
the adjustment to the subscription amount in fiscal 2007, are detailed
below.
The CSL New World Mobility Group is a provider of mobile
telecommunication products and services which operates primarily in
Hong Kong.
Other fiscal 2006 acquisitions
During fiscal 2006, we also acquired several other entities which are
not individually significant and have been aggregated as ‘Other’. The
effect on the Telstra Group of the acquisitions are detailed below.
Our ‘Other’ acquisitions include:
• 100% of the issued share capital of the Converged Networks Group;
• additional 25% interest in the issued share capital of Invizage Pty
Ltd giving us 100% ownership of this entity;
• additional 40% interest in the issued share capital of Enhanced
Processing Technologies Inc giving us 100% ownership of this
entity; and
• additional 24.7% interest in the issued share capital of Adstream
(Aust) Pt y Ltd and it s controlled entities giving us a controlling 58%
interest.
24. Notes to the cash flow statement (continued)
Telst ra Group
$m
Net increase in Telstra Group net assets
Inflow (outflow) of cash on acquisition (net of
transaction costs) . . . . . . . . . . . . . . . . . . . . . . 21
New World Mobility Group net ident ifiable assets
acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
Goodwill on acquisition of New World Mobility Group 308
Reduction of Telstra CSL goodwill on dilution . . . . . (308)
267
Represented by the following movements in equity
Minority interest recognised . . . . . . . . . . . . . . . (230)
Reduction in foreign currency translat ion reserve on
dilution . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19)
Dilution gain recognised as a result of merger . . . . 18
Other
2006 2006
$m $m
Consideration for acquisit ions
Cash consideration for acquisitions 31
Costs of acquisitions . . . . . . . . . 2
Total purchase consideration . . . 33
Payments of deferred consideration
for prior years’ acquisition . . . . . 10
Outflow of cash on acquisition . . 43
Fair value
Carrying
value
Assets/(liabilities) at acquisition date
Trade and other receivables. . . . . 5 5
Property, plant and equipment . . 2 2
Intangible assets - goodwill . . . . . 26 26
Intangible assets - other . . . . . . . 12 -
Provisions . . . . . . . . . . . . . . . . (3) (3)
Deferred tax liabilities . . . . . . . . (4) -
Other liabilities . . . . . . . . . . . . - (2)
Net assets. . . . . . . . . . . . . . . . 38 28
Adjustment to reflect minority
interests acquired . . . . . . . . . . . (14)
Adjustment upon increase in
ownership interest from associated
entity to controlled . . . . . . . . . . (2)
Goodwill on acquisition. . . . . . . 11
33
Profit from acquisition date until 30
June 2006 . . . . . . . . . . . . . . . . 1