✨ Financial Statements
Vector Limited
Electricity Lines Business
Notes to the Financial Statements
For the year ended 31 March 2004
24. ACQUISITION OF UNITEDNETWORKS LIMITED
On 11 October 2002 the group acquired a controlling interest in UnitedNetworks Limited, a company providing utility services in New Zealand. The acquisition of 100% of UnitedNetworks Limited was completed on 15 November 2002.
The acquisition was accounted for using the purchase method with the resulting goodwill being amortised in accordance with the Vector group’s, of which the electricity lines business is the predominant activity, accounting policy.
The acquisition had the following effect on the electricity lines business of Vector Limited at acquisition date.
Summary of the effect of acquisition of UnitedNetworks Limited – electricity lines business
| 2003 | |
|---|---|
| $000 |
Lines activity assets and liabilities acquired:
Bank balances | (16,956)
Net current assets | 4,654
Deferred tax | (95,763)
Property, plant and equipment | 1,580,227
Borrowings | (658,240)
| 813,922
Goodwill | 589,558
Cash consideration paid | 1,403,480
Acquisition costs | 13,146
Overdraft acquired | 16,956
Net cash impact of acquisition | 1,433,582
In a separate transaction immediately subsequent to the acquisition of the electricity lines business of UnitedNetworks Limited, the Eastern region electricity assets were sold to Powerco Limited and Hawkes Bay Network Limited.
| 2004 | 2003 | |
|---|---|---|
| $000 | $000 |
25. INTANGIBLE ASSETS
Goodwill
Balance at beginning of year | 586,974 | -
Acquired in the year | (3,201) | 589,558
Acquisition costs | - | 13,146
Amortisation in the financial year | (29,975) | (15,730)
Balance at end of year | 553,798 | 586,974
Goodwill is amortised over a period up to 20 years in accordance with the Vector group’s, of which the electricity lines business is the predominant activity, accounting policy.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 27
Gazette.govt.nz —
NZ Gazette 2005, No 27
✨ LLM interpretation of page content
🏭 Acquisition of UnitedNetworks Limited
🏭 Trade, Customs & IndustryAcquisition, Financial Statements, UnitedNetworks Limited, Vector Limited
🏭 Intangible Assets Goodwill
🏭 Trade, Customs & IndustryIntangible Assets, Goodwill, Financial Statements, Vector Limited