Gazprom estimates Beltransgaz's goodwill at 44 bln rubles
MINSK. April 27 (Interfax) - Russian gas major OJSC Gazprom has estimated OJSC Beltransgaz's provisional goodwill (business reputation) at 44.003 billion Russian rubles, Gazprom said in its financial report to International Financial Reporting Standards (IFRS) for 2011.
"Goodwill is attributable to enabling effective integration of the Russian and Belarusian gas transmission systems, reducing transit risks, providing additional security of gas sales in the respective markets over the long term," the report said.
"The acquisition of OAO Beltransgaz also allowed the Group to play an active role in the gas infrastructure development in the Republic of Belarus - which is very important for its synchronization with the Company's facilities development in Russia," it said.
Goodwill is measured as the difference between the cost of acquiring 100% of Beltransgaz's shares (112.605 billion rubles) and the provisional fair value of Beltransgaz's net assets (68.602 billion rubles).
"Purchase consideration includes 50% share in OAO Beltransgaz acquired in December 2011 in amount of 78.3 billion rubles ($2.5 billion) and fair value of previously acquired 50% share in OAO Beltransgaz accounted for using the equity method in amount of 34.3 billion rubles," the report said. By December 31, 2010, Gazprom estimated the carrying value of 50% of Beltransgaz at 53.678 billion rubles, and by September 31, 2010 - 70.951 billion rubles.
"As a result of the Group obtaining control over OAO Beltransgaz, the Group's previously held 50% interest was re-measured to fair value, resulting in a loss of 9.63 billion rubles. This has been recognized in the line item 'share of net income of associated undertakings and jointly controlled entities' in the consolidated statement of comprehensive income," the report said.
