Tiscali 2008 Annual Report Download - page 134

Tiscali Italia S.p.A.
Changes during the year include EUR 55.8 million in relation
to the allocation of the financial receivables due from the
parent company Tiscali S.p.A. to cover losses relating to the
previous year, as well as the booking of the figurative charge
of the Stock Option plans assigned to managers who are
employees of the subsidiary.
The impairment test on the book value at 31 December 2008,
carried out by means of discounting back the expected cash
flows, as emerging from the Tiscali Group’s business plan, did
not lead to any writedown.
Tiscali Motoring S.r.l
The book value of the equity investment, which is reaching
the final stages of the winding-up procedure started on 11 July
2003, was written down in full during the previous year.
An amount of EUR 38 thousand has been recorded in the
financial statements, under the provision for the coverage of
losses, so as to cover any losses which may arise on liquidation
of the same.
World Online International N.V.
This is a sub-holding company based in the Netherlands which,
at 31 December 2008, controlled Tiscali Group companies
operating, in particular, in the UK.
The impairment test on the book value of the equity
investment at 31 December 2008 was performed by means
of discounting back the expected cash flows (DCF), as per the
Tiscali Group’s business plan, as described in the section
Verification of impairment of equity investments on page 132.
This test led to a writedown of the equity investment for a total
of EUR 954 million.
Tiscali International Network S.p.A.
Tiscali International Network S.p.A is 60% owned by Tiscali
S.p.A. and 40% owned by the Dutch company Tiscali
International Network B.V, in turn indirectly controlled by
Tiscali S.p.A..
On 3 February 2009, a preliminary purchase/sale agreement
was announced for the activities held by Tiscali International
Network B.V. with BS Private Equity S.p.A. and BC Investimenti
SGR; finalization of the agreement is subordinate to signing of
the deed of sale as well as approval of the transaction by the
competent anti-trust authorities.
TISCALI S.P.A. – FINANCIAL STATEMENTS AND EXPLANATORY NOTES
133
Energy Byte Srl in liquidation
During 2004, as per the resolution adopted by the general
shareholders’ meeting on 11 March, the company was placed in
liquidation. This equity investment was written down in full in
previous years. An amount of EUR 38 thousand has been
recorded in the financial statements, under the provision for the
coverage of losses on investee companies, so as to cover any
losses which may arise on liquidation of the same.
Quinary S.p.A.
The company, operative in the field of the development and
production of systems integration software, was sold off to
Linklab S.r.l. in November 2008 at a price of EUR 0.05 million,
generating a capital loss of EUR 0.25 million booked to the
income statement. Net changes during the year include EUR
0.7 million reflecting the waiver by the parent company of
receivables due from said subsidiary booked to the income
statement for EUR 0.3 million and using the provision for
covering losses set aside last year for EUR 0.4 million. In
addition, EUR 0.3 million is represented by the share capital
increase subscribed in October 2008.
Tiscali Czech Republic S.r.o.
The winding-up procedure for the dormant company in the
Czech Republic concluded during the year.
Tiscali Deutschland Gmbh
Tiscali Deutschland held a significant part of the operating
activities of the Tiscali Group in Germany, headed up by
Tiscali GmbH, sold during the first few months of 2007. The
results of the impairment test, developed taking into account
the effects of the afore-mentioned events, led in the previous
year to the complete writedown of the equity investment.
During 2008, steps were taken to set aside a sum of EUR 5.8
million to the provision for the coverage of losses on investee
companies, intended to cover the equity deficit generated by
the subsidiary.
Tiscali Finance SA
The book value for this investment, a Tiscali Group “vehicle”
which managed the Equity Linked Bonds of EUR 209.5 million
repaid in September 2006, is indirectly adjusted by the sum
of EUR 30.2 million recognised as a provision for the coverage
of losses on investee companies, established in order to cover
the residual equity deficit of this subsidiary. During 2008, the
equity investment was written down in full by means of booking
to the income statement.