Notes 26-30
- 26. Post employment benefits
- 27. Provisions
- 28. Trade and other payables
- 29. Acquisitions
- 30. Disposals and discontinued operations
30. Disposals and discontinued operations
India – Bharti Airtel Limited
On 9 May 2007 and in conjunction with the acquisition of Vodafone Essar, the Group entered into a share sale and purchase agreement in which a Bharti group company irrevocably agreed to purchase the Group’s 5.60% direct shareholding in Bharti Airtel Limited. During the year ended 31 March 2008, the Group received £654 million in cash consideration for 4.99% of such shareholding and recognised a net gain on disposal of £250 million, reported in non-operating income and expense. The Group’s remaining 0.61% direct shareholding was transferred in April 2008 for cash consideration of £87 million.
Belgium and Switzerland – Belgacom Mobile S.A. and Swisscom Mobile A.G.
During the year ended 31 March 2007, the Group disposed of its 25% interest in Belgacom Mobile S.A. to Belgacom S.A. and its 25% interest in Swisscom Mobile A.G. to Swisscom A.G. These transactions completed on 3 November 2006 and 20 December 2006, respectively. The carrying value of these investments at disposal and the cash effects of the transactions are summarised in the table below:
Belgacom Mobile £m |
Swisscom Mobile £m |
|
---|---|---|
Net assets disposed | (901) | (1,664) |
Total cash consideration | 1,343 | 1,776 |
Other effects(1) | (1) | (44) |
Net gain on disposal(2) | 441 | 68 |
Notes:
- (1)
- Other effects include foreign exchange gains and losses transferred to the income statement and professional fees related to the disposal.
- (2)
- Reported in other income and expense in the consolidated income statement.
Japan – Vodafone K.K.
On 17 March 2006, the Group announced an agreement to sell its 97.7% holding in Vodafone K.K. to SoftBank. The transaction completed on 27 April 2006, with the Group receiving cash of approximately ¥1.42 trillion (£6.9 billion), including the repayment of intercompany debt of ¥0.16 trillion (£0.8 billion). In addition, the Group received non-cash consideration with a fair value of approximately ¥0.23 trillion (£1.1 billion), comprised of preferred equity and a subordinated loan. SoftBank also assumed debt of approximately ¥0.13 trillion (£0.6 billion). Vodafone K.K. represented a separate geographical area of operation and, on this basis, Vodafone K.K. was treated as a discontinued operation in Vodafone Group Plc’s annual report for the year ended 31 March 2006.
Income statement and segment analysis of discontinued operations
Restated 2007 £m |
|
---|---|
Segment revenue | 520 |
Inter-segment revenue | – |
Net revenue | 520 |
Operating expenses | (402) |
Depreciation and amortisation(1) | – |
Impairment loss | – |
Operating profit/(loss) | 118 |
Net financing costs | 8 |
Profit/(loss) before taxation | 126 |
Taxation relating to performance of discontinued operations | (15) |
Loss on disposal(2) | (672) |
Taxation relating to the classification of the discontinued operations | 145 |
Loss for the financial year from discontinued operations(3) | (416) |
Basic loss per share | (0.76)p |
Diluted loss per share | (0.76)p |
Notes:
- (1)
- Including gains and losses on disposal of fixed assets.
- (2)
- Includes £719 million of foreign exchange differences transferred to the income statement on disposal.
- (3)
- Amount attributable to equity shareholders for the year ended 31 March 2007 was a loss of £419 million.
Cash flows from discontinued operations
2007 £m |
|
---|---|
Net cash flow from operating activities | 135 |
Net cash flow from investing activities | (266) |
Net cash flow from financing activities | (29) |
Net cash flow | (160) |
Cash and cash equivalents at the beginning of the financial year | 161 |
Exchange loss on cash and cash equivalents | (1) |
Cash and cash equivalents at the end of the financial year | – |
Assets and liabilities of discontinued operations
Restated 27 April 2006 £m |
|
---|---|
Intangible assets | 3,943 |
Property, plant and equipment | 4,562 |
Other investments | 29 |
Cash and cash equivalents | 124 |
Inventory | 148 |
Trade and other receivables | 1,147 |
Deferred tax asset | 636 |
Total assets | 10,589 |
Short and long term borrowings | (674) |
Trade and other payables(1) | (2,342) |
Deferred tax liabilities | (245) |
Other liabilities | (40) |
Total liabilities | (3,301) |
Net assets | 7,288 |
Minority interest | (87) |
Net assets disposed | 7,201 |
Total consideration | (7,245) |
Foreign exchange recycled to the income statement on disposal | 719 |
Other | (3) |
Net loss on disposal | 672 |
£m | |
---|---|
Net cash inflow arising on disposal: | |
Cash consideration | 6,141 |
Cash to settle intercompany debt | 793 |
Cash and cash equivalents disposed | (124) |
6,810 | |
Other | (12) |
6,798 |
Note:
- (1)
- Includes £793 million of intercompany debt.