Basic HTML Version
147
FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
ACQUISITION OF CUATRO GROUP
As explained above, Telecinco acquired Cuatro Group in 2010. This acquisition was executed through a non-cash
contribution by Prisa TV, S.A.U. of the shares of Sociedad General de Televisión Cuatro, S.A.U (SOGECUATRO) in the
non-monetary capital increase carried out on 28 December 2010 by Mediaset España Comunicación, S.A.
The initial consideration for the non-monetary contribution entailed the delivery of 73,402 thousand shares of Mediaset
España Comunicación, S.A. to Prisa TV S.A.U. However, the integration contract stipulated that if at 30 November 2010
SOGECUATRO had financial debt or less than EUR 25 million of equity, Prisa TV, S.A.U. would make up for the lower
value of the contribution by making a capital contribution to Sogecuatro, S.A.U. before the date of the transaction or by
delivering 2,866,972 shares of Mediaset España. Prisa TV, S.A.U. elected the second option.
The consideration transferred in the business combination was measured at the fair value of the shares delivered to
Prisa TV (net of reimbursements made by Prisa) of EUR 590,730 thousand, calculated taking Mediaset España’s closing
share price on 29 December 2010.
The provisional fair values of the assets and liabilities acquired from Cuatro Group were initially estimated taking the
values in its accounting records. In accordance with IFRS 3, in 2011 the company quantified the cost of the Sogecuatro
business combination and the fair values to be assigned to its identifiable assets and liabilities.The company engaged a
reknowned, independent expert to help make this calculation.
Mediaset España used the 12 months allowed in the standard to make the final allocation of the purchase price allocation
in the acquisition of Sogecuatro and its subsidiaries before its recognition.
The breakdown of the final purchase price allocation of Sogecuatro in 2011 and the provisional allocation in 2010 is as
follows:
THOUSANDS OF
EUROS(*)
DIFFERENCE
THOUSANDS OF
EUROS (**)
ASSETS
Property plant and equipment
(Note 6)
384
-
384
Intangible assets (Note 7)
245,737
244,665
1,072
Audiovisual property rights (Note 8)
74,301
478
73,823
Other financial assets
4
-
4
Deferred tax assets
25,291
6,003
19,289
Cash and equivalents
37,805
-
37,805
Account receivable
111,359
-
111,359
Other current assets
1,026
-
1,026
Inventories
7,988
(1,422)
9,410
TOTAL ASSETS
503,896
249,724
254,172
(Continue)