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Notes 26-30

30. Disposals and discontinued operations

India – Bharti Airtel Limited

On 9 May 2007 and in conjunction with the acquisition of Vodafone Essar, the Group entered into a share sale and purchase agreement in which a Bharti group company irrevocably agreed to purchase the Group’s 5.60% direct shareholding in Bharti Airtel Limited. During the year ended 31 March 2008, the Group received £654 million in cash consideration for 4.99% of such shareholding and recognised a net gain on disposal of £250 million, reported in non-operating income and expense. The Group’s remaining 0.61% direct shareholding was transferred in April 2008 for cash consideration of £87 million.

Belgium and Switzerland – Belgacom Mobile S.A. and Swisscom Mobile A.G.

During the year ended 31 March 2007, the Group disposed of its 25% interest in Belgacom Mobile S.A. to Belgacom S.A. and its 25% interest in Swisscom Mobile A.G. to Swisscom A.G. These transactions completed on 3 November 2006 and 20 December 2006, respectively. The carrying value of these investments at disposal and the cash effects of the transactions are summarised in the table below:

Net assets disposed (901) (1,664)
Total cash consideration 1,343 1,776
Other effects(1) (1) (44)
Net gain on disposal(2) 441 68


Other effects include foreign exchange gains and losses transferred to the income statement and professional fees related to the disposal.
Reported in other income and expense in the consolidated income statement.

Japan – Vodafone K.K.

On 17 March 2006, the Group announced an agreement to sell its 97.7% holding in Vodafone K.K. to SoftBank. The transaction completed on 27 April 2006, with the Group receiving cash of approximately ¥1.42 trillion (£6.9 billion), including the repayment of intercompany debt of ¥0.16 trillion (£0.8 billion). In addition, the Group received non-cash consideration with a fair value of approximately ¥0.23 trillion (£1.1 billion), comprised of preferred equity and a subordinated loan. SoftBank also assumed debt of approximately ¥0.13 trillion (£0.6 billion). Vodafone K.K. represented a separate geographical area of operation and, on this basis, Vodafone K.K. was treated as a discontinued operation in Vodafone Group Plc’s annual report for the year ended 31 March 2006.

Income statement and segment analysis of discontinued operations

Segment revenue 520
Inter-segment revenue
Net revenue 520
Operating expenses (402)
Depreciation and amortisation(1)
Impairment loss
Operating profit/(loss) 118
Net financing costs 8
Profit/(loss) before taxation 126
Taxation relating to performance of discontinued operations (15)
Loss on disposal(2) (672)
Taxation relating to the classification of the discontinued operations 145
Loss for the financial year from discontinued operations(3) (416)
Basic loss per share (0.76)p
Diluted loss per share (0.76)p


Including gains and losses on disposal of fixed assets.
Includes £719 million of foreign exchange differences transferred to the income statement on disposal.
Amount attributable to equity shareholders for the year ended 31 March 2007 was a loss of £419 million.
Cash flows from discontinued operations
Net cash flow from operating activities 135
Net cash flow from investing activities (266)
Net cash flow from financing activities (29)
Net cash flow (160)
Cash and cash equivalents at the beginning of the financial year 161
Exchange loss on cash and cash equivalents (1)
Cash and cash equivalents at the end of the financial year
Assets and liabilities of discontinued operations
27 April
Intangible assets 3,943
Property, plant and equipment 4,562
Other investments 29
Cash and cash equivalents 124
Inventory 148
Trade and other receivables 1,147
Deferred tax asset 636
Total assets 10,589
Short and long term borrowings (674)
Trade and other payables(1) (2,342)
Deferred tax liabilities (245)
Other liabilities (40)
Total liabilities (3,301)
Net assets 7,288
Minority interest (87)
Net assets disposed 7,201
Total consideration (7,245)
Foreign exchange recycled to the income statement on disposal 719
Other (3)
Net loss on disposal 672
Net cash inflow arising on disposal:  
Cash consideration 6,141
Cash to settle intercompany debt 793
Cash and cash equivalents disposed (124)
Other (12)


Includes £793 million of intercompany debt.