238
Annual Report -
2013
-
Vivendi
4
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Note 2. Major changes in the scope of consolidation
2.4.
Strategic partnership among the Canal+ Group, ITI, and TVN in Poland
On November 30, 2012, Canal+ Group, ITI, and TVN finalized the
combination of their Polish Pay-TV platforms.
Acquisition of ITI Neovision “n”
Following the merger of Canal+ Cyfrowy (Canal+ Group’s Cyfra+
platform) with ITI Neovision (TVN’s ”n” platform), Canal+ Group holds a
51% interest in the new structure “nc+” (compared to a previous 75%
interest in Canal+ Cyfrowy). As Canal+ Group has the majority on the
Supervisory Board and the power to govern the financial and operating
policies of “n”, the latter has been fully consolidated by Canal+ Group
since November 30, 2012.
The purchase price for the 100% interest in “n” amounted to
€268 million. The goodwill of “n” was valued according to the full
goodwill method. Canal+ Group finalized the purchase price allocation
within a 12-month period as required by accounting standards: the
purchase price consists of the fair value of the assets acquired
and the liabilities incurred or assumed on the basis of analysis and
estimates undertaken by Canal+ Group, with the assistance of third-
party appraisers, when appropriate. The main assets acquired were
a subscriber base valued at €33 million, amortized over a period of
8 years, the brand, valued at €18 million, and tax losses carried forward
of €69 million. In 2013, goodwill was adjusted by -€75 million and the
final goodwill of “n” amounted to €138 million.
Acquisition of an interest in N-Vision
On November 30, 2012, Canal+ Group acquired a 40% interest in
N-Vision, which indirectly holds a 52% interest in TVN. On December 18,
2013, in accordance with the shareholders’ agreement, ITI exercised its
put option to sell to Canal+ Group a 9% interest in N-Vision’s share
capital and voting rights for €62 million, paid in cash in February 2014:
Canal+ Group’s ownership interest in N-Vision thus increased to 49%
(please refer to Note 27).
2.5.
Other changes in the scope of consolidation
Acquisition of a 60% interest in Red Production Company
On December 5, 2013, Studiocanal acquired a 60% majority interest in
Red Production Company, a British company which produces television
series.
2.6.
Transactions underway as of December 31, 2013
Agreement to share a part of SFR’s mobile access networks
On January 31, 2014, SFR and Bouygues Telecom entered into a
strategic agreement to share a part of their mobile access networks,
following a period of negotiations announced in July 2013. They will
roll out a new shared network in an area covering 57% of the French
population. This agreement will enable both operators to improve their
mobile coverage and generate significant savings over time.
The agreement is based on two principles:
the creation of a joint company, to manage the shared base station
assets; and
entry by the operators into a RAN-sharing service agreement
covering 2G, 3G, and 4G services in the shared area.
This network-sharing agreement is similar to numerous arrangements
already existing in other European countries. Each operator will retain
its own innovation capacity as well as complete commercial and pricing
independence.
The network-sharing agreement took effect upon the signing of the
agreement and the shared network is expected to be completed by the
end of 2017.
From an accounting perspective, this agreement had no impact on the
accounts for fiscal year 2013.
Acquisition of a 51% interest in Mediaserv by Canal+ Group
On July 12, 2013, Canal+ Overseas entered into an agreement
with Loret Group to acquire a 51% majority interest in Mediaserv,
an overseas telecom operator. On February 10, 2014, the French
Competition Authority approved this acquisition, which was completed
on February 13, 2014.
