Tiscali 2001 Annual Report Download - page 135

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Nets SA
This Company, which was taken over in December 1999, in part by means of the issue of
new Tiscali shares, was written down by about EUR 3mn in order to align its book value to
the average quotation of Tiscali stock as at January 2002, which was substantially lower
than quotation at acquisition date.
Quinary SpA
The increase in value during FY 2001, of EUR 733,000, is due to the underwriting of an
increase in capital approved by the extraordinary shareholders' meeting of this subsidiary
in June 2001.
The write-down carried out, of about EUR 18mn, was made to align its book value to the
average quotation of Tiscali stock as at January 2002, which was substantially lower than
the quotation at acquisition date.
SurfEU.com Ltd (being wound up)
On April 23, 2001, Tiscali acquired SurfEU.com Ltd, a holding of the SurfEU Group, ISP and
portal with a leading position in Germany by means of a transfer and purchase contract of
said Company's whole share capital. Under the terms of this agreement, 80% of
SurfEU.com Ltd share capital has been transferred to Tiscali, against 4,814,749 new Tiscali
shares. The remaining 20% was acquired by means of a cash payment of about EUR 26mn.
In the framework of the corporate restructuring process, SurfEU.com Ltd subsidiaries in
Germany, Sweden, Austria, Switzerland and Finland were transferred to other Companies
of the Tiscali Group operating in said countries. In December 2001, SurfEU.com Ltd's Board
of Directors issued an extraordinary dividend of EUR 8.5mn consisting mainly of
receivables accruing from the above mentioned transfers and approved the Company's
winding up.
The write-down, of about EUR 18mn, was made in order to align the book value to the total
transfer values of SurfEU.com Ltd subsidiaries.
Tiscali Belgium Holding SA (being wound up)
The reorganisation of the Group was implemented on the basis of precise guidelines,
defined for each country, providing for concentration of the business activities carried out
in each country into a single legal entity. During this reorganisation, Tiscali Belgium SA
indirectly controlled by Tiscali SpA through Tiscali Belgium Holding SA, transferred its
operations to World Online NV (renamed Tiscali SA/NV) against payment of about EUR
6.7mn. The Board of Directors then approved its winding up. Subsequently, winding up of
Tiscali Belgium Holding SA was also declared in December 2001. Therefore, the
participation was entirely written down.
Tiscali Datacomm AG
This Company, taken over in 2000 by means of the issue of new shares, was written down
for about EUR 31mn in order to align its value to the average quotation of Tiscali stock as
at January 2002, which was substantially lower than quotation at acquisition date.
Parent Company Financial Statements