Notes to the financial statements
5. Discontinued operations continued
30 JUN 2023 $M
Carrying value of net assets sold as at 30 June 2023
3.0
Cash and cash equivalents Trade and other receivables
15.9 24.7 62.7
Contract assets
Intangible assets (including goodwill)
881.9
Property, plant, and equipment
4.3
Right of use assets (ROU) Trade and other payables
(36.5)
(4.6)
Lease liabilities
(18.2)
Deferred tax
Net assets sold
933.2
1,690.7
Net cash consideration received on completion
66.1
Loan receivable
(11.0)
Intercompany balance repayment
Total consideration
1,745.8
727.4
Investment in joint venture
2,473.2
Total enterprise value – disposal group
(30.1)
Costs of sale
(933.2)
Carrying value of net assets sold
Gain on sale of discontinued operations
1,509.9
Policies
A disposal group that is sold or held for sale is also reported as discontinued operations if it meets the below criteria: — It is a component of the groups’ business, the operations and cash flows of which can be clearly distinguished from the rest of the group. — It represents a separate major line of business or geographical area of operations. The transaction constituted loss of control of the subsidiaries within Vector metering. The retained interest in Vector metering is a joint venture and has been included in investment in joint venture at 30 June 2023. The investment in joint venture includes shareholder loans of $229.0 million. Refer to note 15.1 for more details. Vector has elected to follow IFRS 10: Consolidated Financial Statements in recognising the gain on sale from the transaction. Under IFRS 10, upon the loss of control of a subsidiary, any retained interest should be remeasured to its fair value, with any resulting gain or loss recognised in the income statement. Upon completion of the sale of the 50% interest in Vector metering, the group received a total of $1,745.8 million in consideration representing a combination of $1,690.7 million in cash consideration from QIC and external enders to the newly formed Vector Metering joint venture, a loan receivable from QIC of $68.2 million less repayment of an $11.0 million intercompany balance. The loan has been included in non-current receivables at 30 June 2023. At 30 June 2023, the sale of the 50% interest in Vector metering remained subject to a final wash-up in respect of working capital and capital expenditure. The wash-up has been provisionally calculated as a payment of $2.1m from Vector to QIC, which has been offset against the loan balance within the consideration as at 30 June 2023. The final wash-up will be confirmed by 31 March 2024. Vector metering was classified as held for sale in December 2022, and its assets and liabilities were presented as a disposal group held for sale in the FY23 interim financial statements. Depreciation and amortisation on the assets of Vector metering ceased from December 2022 due to the held for sale classification.
Loss of control and retained interest
Gain on sale
Consideration
Depreciation and amortisation
69
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