Twenty-First Century Fox 2003 Annual Report Download - page 76

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The News Corporation Limited74
Notes to and forming part of the Concise Financial Report (continued)
FOR THE YEAR ENDED 30 JUNE, 2003
➤ NOTE 9Retained profits
Retained profits at the beginning of the financial year 1 10,906
Net loss attributable to members of the parent entity 1,808 (11,962)
Dividends provided for or paid (351) (203)
Aggregate amount transferred (to) from reserves (321) 1,260
Retained profits at the end of the financial year 1,137 1
Dividends on ordinary and preferred limited voting ordinary shares are paid out of the retained profits of the parent entity, The News
Corporation Limited. The parent entity has retained profits as at 30 June, 2003 of $17.8 billion (2002 $13.7 billion).
➤ NOTE 10 Hughes Electronics
In April 2003, the Group, General Motors Corporation (“GM”) and Hughes Electronics Corporation (“Hughes”) reached an
agreement in which the Group would acquire 34% of Hughes. The Group will acquire GM’s 19.9% interest in Hughes for
approximately US$3.8 billion ($5.7 billion), of which US$768 million ($1,157 million) of the consideration may be paid in
preferred ADRs. The Group will acquire through a merger an additional 14.1% of Hughes for approximately US$2.7 billion ($4.1
billion) that is payable, at the Group’s option, in cash or preferred ADRs. Simultaneously with the closing of this transaction, the
Group will transfer its 34% ownership interest in Hughes to Fox Entertainment Group (“FEG”) in exchange for promissory notes
representing US$4.5 billion ($6.8 billion) and approximately 74.2 million shares of FEG’s Class A Common Stock. This will
increase the Group’s ownership interest in FEG from 80.6% to approximately 82%, whilst its voting percentage of FEG will remain
at 97%. The closing of this transaction is subject to a number of conditions, including approval by GM’s shareholders, a tax ruling
and regulatory approvals.
➤ NOTE 11 Liberty Media
In March 2003, the Group and Liberty Media Corporation (“Liberty”) entered into an agreement under which Liberty has the right,
prior to 28 September, 2003, to purchase US$500 million of the Group’s preferred limited voting ordinary ADRs, at US$21.50
($35.93) per ADR. If Liberty does not exercise its right, the Group can require Liberty to purchase US$500 million ($835 million)
of its preferred limited voting ordinary ADRs at this price should the Group acquire an ownership interest in Hughes Electronics
Corporation prior to 27 March, 2005.
Consolidated
2003 2002
A$ million