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of 2011 and significant transactions and events for the fourth quarter of 2011 amounting to NOK 779 million according to the financial
information for the fourth quarter of 2011 released by VimpelCom Ltd. on 13 March 2012. See below for further details.
In 2011, share of net income from C More Group AB includes impairment loss of NOK 530 million, mainly due to weaker subscriber
developments and results than expected.
Market values (quoted marked value) of the Group’s ownership interest in listed associated companies as of 31 December 2011 were
NOK 29.3 billion, NOK 788 million and NOK 88 million for VimpelCom Ltd., EDB Ergo Group ASA and Wireless Matrix Corporation (included in
VimpelCom Ltd. is incorporated in Bermuda, headquartered in the Netherlands, and is listed on the New York Stock Exchange. As of
31 December 2011, the Group owns 31.67% shares of VimpelCom Ltd. with a voting share of 25.01%. /page 51/
telenor annual report 2011
notes to the financial statements / telenor group On 15 February 2012, the Group purchased 234 million preferred shares of VimpelCom Ltd. from Weather Investments II for a consideration of
NOK 2.2 billion, thereby increasing the Group’s voting share in VimpelCom Ltd. from 25.01% to 36.36%. At the same time, Telenor and Weather
entered into an option agreement, granting Weather a put-option on Telenor for the remaining 71,000,000 preference shares in VimpelCom
at the same price per share as in the first transaction. Telenor has in addition certain situational call-options, amongst other related to the
remaining preference shares. In connection with this transaction, the Group has withdrawn all its claims against Altimo Holdings & Investment
Ltd., Altimo Cooperatief u.A. and VimpelCom Ltd. in the pending arbitration proceedings. The Group’s withdrawal of its claims will result in the
termination of the VimpelCom Shareholders Agreement, see note 35 for further information.
On 13 March 2012, VimpelCom Ltd. released financial information for the fourth quarter of 2011. Reported net loss attributable to VimpelCom
Ltd. for the fourth quarter in accordance with uS GAAP was uSD 386 million, of which uSD 439 million related to adjustment arising from
change in amortization method of excess values of Wind Telecom acquisition and impairment losses of VimpelCom Ltd.’s operations
in Vietnam and Cambodia. In accordance with the accounting policy for associated companies, the Group has adjusted for its share of
significant transactions and events of uSD 139 million (equivalent to NOK 779 million), whereas the Group will, in the first quarter 2012,
recognise its share of the fourth quarter remaining net income of uSD 53 million using the equity method of accounting.
The following table sets forth summarised financial information of the Group’s share of associated companies as of 31 December.
NOK in millions Income Statement information
Revenue Net income
Statement of Financial Position information (including excess values)
Total assets Total liabilities Net assets 2011 2010 41 597 2 114 26 364
3 145 111 767 78 044 33 722 58 340
30 776 Joint ventures
3G infrastructure services Ab
3G Infrastructure Services AB was acquired as a part of Vodafone Sweden (the mobile operations in Sweden) on 5 January 2006. 3G
Infrastructure Services AB is a jointly controlled entity with the mobile operator “3”, of which the Group consolidates proportionally 50%, which
is equal to ownership and share of votes. The jointly controlled entity was established to build the network together to reduce costs to build
and operate the 3G network.
Net4Mobility HB is a jointly controlled entity, under a partnership agreement, with the mobile operator Tele2 Sverige AB. Telenor Sweden
owns 50% which is equal to the share of votes. The jointly controlled entity was established in 2009 to build and operate a joint 2G and 4G
network in order to reduce costs and improve competitive position in the Swedish market. The agreement comprises spectrum sharing in
various frequency bands. Tele2 and Telenor Sweden acquired 4G licences in Sweden and will, according to the partnership agreement,
contribute these and 2G licenses to the joint venture during 2012 and 2013. In order to achieve the expected benefits from the network collaboration in Net4Mobility HB, the Group is contributing its share of capital
commitment up to the amount of NOK 1.2 billion. The roll-out of the 4G network is in progress. under Swedish law, all partners in a partnership
are jointly and severally liable for all obligations in a partnership.
The Group’s share of assets, liabilities, revenues, expenses, taxes and profit of the jointly controlled entities, which are proportionately
consolidated in the Group’s financial statements, are as follows:
NOK in millions Revenues Operating expenses Net financial income (expenses) Profit before taxes
income taxes Net income 2011 2010 658 (558) (9) 92
(23) 69 643
(6) Non-current assets Current assets Total assets 2 180 185 2 365 1 621
1 775 Non-current liabilities Current liabilities Total liabilities 1 602 356 1 958 1 326
1 477 407 298 Net assets /page 52/
telenor annual report 2011
notes to the financial statements / telenor group / 22 / Trade and other receivables
NOK in millio...
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This document was uploaded on 03/21/2014.
- Spring '14