Telstra 2009 Annual Report Download - page 183

Telstra Corporation Limited and controlled entities
168
Notes to the Financial Statements (continued)
Fiscal 2008 acquisitions
Sequel Limited
On 27 June 2008, our controlled entity Telstra Holdings Pty Ltd
acquired 55% of the issued capital of Sequel Limited who acquired
100% of the issued capital of the Cheerbright International Holdings
Limited Group, the China Topside Limited Group and the Norstar
Advertising Media Holdings Limited Group (Norstar Media and
Autohome/PCPop) for a total consideration of $147 million including
acquisition costs.
Norstar Media and Autohome/PCPop are internet businesses with
leading positions in the fast-growing online auto and digital device
advertising sectors in China.
The effect of the acquisition is detailed below:
In fiscal 2008 we accrued deferred contingent consideration of $15
million and recognised goodwill of $68 million on acquisition. In fiscal
2009 certain pre-determined revenue and EBITDA targets were
achieved and an additional $68 million was paid. This, along with the
finalisation of the acquisition balance sheet, has increased goodwill
on acquisition to $125 million.
Other fiscal 2008 acquisitions
On 6 February 2008, our controlled entity 1300 Australia Pty Ltd
acquired 100% of the issued capital of Alpha Phone Words Pty Ltd for
$3 million, of which $1 million is deferred consideration. The effect on
the Telstra Group of this acquisition was an increase in intangibles of
$3 million.
Refer to note 25 for further details on our acquisitions.
20. Notes to the statement of cash flows (continued)
Norstar Media and
Autohome/PCPop
2008 2008
$m $m
Consideration for acquisition
Initial cash consideration paid in fiscal 2008. . . 76
Additional cash consideration paid in fiscal
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Costs of acquisition paid in fiscal 2009 . . . . . . 3
Total purchase consideration . . . . . . . . . . . 147
Cash balances acquired . . . . . . . . . . . . . . . (6)
Total outflow of cash . . . . . . . . . . . . . . . . 141
Fair
value
Carrying
value
Assets/(liabilities) at acquisition date
Cash and cash equivalents . . . . . . . . . . . . . 6 6
Trade and other receivables . . . . . . . . . . . . . 13 13
Property, plant and equipment. . . . . . . . . . . 3 3
Intangible assets. . . . . . . . . . . . . . . . . . . . 38 1
Trade and other payables . . . . . . . . . . . . . . (11) (11)
Deferred tax liabilities . . . . . . . . . . . . . . . . (9) -
Net assets . . . . . . . . . . . . . . . . . . . . . . . . 40 12
Adjustment to reflect minority interests . . . . . (18)
Goodwill on acquisition . . . . . . . . . . . . . . . 125
147
Profit after minority interests from acquisition
date until 30 June 2008. . . . . . . . . . . . . . . . -