195
Property, plant and equipment
The fair value measurement has increased book value of
“Plant and machinery” by Euro 5 million.
Intangible assets
The fair value measurement has identified an additional value
of Euro 2 million for customer relationships.
The acquisition has given rise to a provisional amount of Euro
4 million in goodwill, which has been recorded in “Intangible
assets”.
If the company had been consolidated from 1 January 2012, its
incremental contribution to sales of goods and services would
have been Euro 16 million, while its contribution to the result
for 2012 would have been Euro 1 million.
On 15 November 2012, the Prysmian Group acquired, through
its subsidiary Prysmian UK Group Limited, control of Global
Details of the provisional fair values of the assets/liabilities acquired are as follows:
* The fair values are reported on a provisional basis.
* The fair values are reported on a provisional basis.
Marine Systems Energy Ltd. from Global Marine Systems Ltd..
The total consideration paid for the acquisition was
approximately Euro 52 million, of which Euro 17 million paid to
the seller by Prysmian UK Group Limited and Euro 35 million
settled by repaying the debt that the company owed to its
former shareholder.
Acquisition-related costs amount to around Euro 565 million
and are classified in “Other expenses”, before tax effects of
Euro 131 million.
In compliance with IFRS 3, the fair values of the assets,
liabilities and contingent liabilities have been determined on
a provisional basis in view of the fact that some estimation
processes had been not completed at the reporting date.
These measurements may be adjusted over the course of the
twelve-month period from the acquisition date.
Details of the cost of acquisition of Global Marine Systems
Energy Ltd and the related cash outlay are as follows:
The acquisition has given rise to a provisional amount of Euro
49 million in goodwill; this amount depends on the purchase
price, which has also been defined on a provisional basis. The
above goodwill is essentially justified by expected synergies
relating to submarine system installation projects.
If the company had been consolidated from 1 January 2012,
its contribution to sales revenue would have been difficult to
determine because its main contracts were signed only shortly
before the acquisition.
(in millions of Euro)
Total acquisition cost (A)
52
Price adjustment (B)
3
Fair value of net assets acquired * (C)
-
Goodwill (A)-(B)-(C)
49
Financial outlay for acquisition
52
Cash and cash equivalents held by acquired company
(1)
Acquisition cash flow
51
(in millions of Euro)
Fair value*
Property, plant and equipment
43
Inventories
1
Trade and other receivables
8
Trade and other payables
(16)
Borrowings from banks and other lenders
(11)
Provisions for risks
(26)
Cash and cash equivalents
1
Net assets acquired (C)*
-
