59
2017 WEL Networks
|
Annual Report
wel.co.nz
WEL NETWORKS LIMITED
Notes to the financial statements
For the year-ended 31 March 2017
(continued)
21 CONTINGENCIES
As at 31 March 2017 the Group had a $5 million contingent liability in relation to a guarantee (2016:$Nil).
The Group has a $5 million bond with Crown Fibre Holdings Limited in relation to security to ensure performance of the
Group’s obligations under the Ultrafast Fibre Network build contract.
22 INVESTMENTS IN SUBSIDIARIES
The parent has 85 shares (85% of shares) in Waikato Networks Limited. The shares are fully paid.
$’000
Opening carrying value
134,455
Acquisition of shares at cost
40,846
Goodwill
5,139
(Loss)/gain on deemed disposal of share in joint operation
220
Share of loss in associate
(914)
Gain on re-measurement of previously held interest to fair value
87,928
Share of net profits and fair value gain in associate
87,234
De-recognition of equity interest on acquisition
(267,674)
Closing balance
-
Prior to the acquisition of the remaining A shares, UFF was equity accounted as an associate as follows:
Equity Holdings
Country of
incorporation
Class of
shares
2017
%
2016
%
Operating Subsidiaries
Waikato Networks Limited
New Zealand
Ordinary
85
85
WEL Services Limited
New Zealand
Ordinary
100
100
Ultrafast Fibre Limited **
New Zealand
Ordinary
85
60
Non Operating Subsidiaries
WEL Electricity Limited
New Zealand
Ordinary
100
100
WEL Power Limited
New Zealand
Ordinary
100
100
WEL Energy Group Limited
New Zealand
Ordinary
100
100
Waikato Electricity Limited
New Zealand
Ordinary
100
100
WEL Generation Limited
New Zealand
Ordinary
100
100
All subsidiaries have balance dates of 31 March.
** Subsidiary of Waikato Networks Limited
