Annual Report - EFG Bank Group

70
Notes to the Consolidated Financial Statements (continued)
45. Acquisition of subsidiaries
Details of acquisitions of subsidiaries during the year ended December 31, 2006 that gave rise to goodwill and
intangible assets are as follows:
DZI Bank AD
In December 2006, the Group, through its subsidiary EFG Eurobank Ergasias SA, acquired 91.29% of the share
capital of DZI Bank AD, which operates in Bulgaria.
Global Fund Management SA
In March 2006, the Group, through its subsidiary EFG Eurobank Ergasias SA, increased its shareholding in Global
Fund Management SA, Athens, to 72% from 44.44%; as a result the company has been transferred from investments
in associated undertakings to subsidiary undertakings and is consolidated using the full consolidation method.
Best Direct SA
In March 2006, the Group, through its subsidiary EFG Eurobank Ergasias SA (through its 100% subsidiary Open 24
SA), acquired 100% of the share capital of Best Direct SA, a company providing sundry services.
C.M.Advisors Limited
On February 13, 2006, the Group, through its subsidiary EFG International, acquired 100% of the issued share
capital of C.M.Advisors Limited (CMA). Bermuda-based CMA focuses on both managing fund-of-hedge-funds and
research of hedge funds. The transaction gave rise to an estimated goodwill of CHF 263.6 million, taking into account
the estimated deferred consideration and to the recognition of intangible assets for CHF 65.2 million. The intangible
assets are amortised over 4 to 14 year periods depending on their nature.
Harris Allday
On August 18, 2006, the Group, through its subsidiary EFG International, acquired 100% of the business and assets
of Harris Allday Stockbrokers (a partnership), a United Kingdom Birmingham-based private client stockbroker. The
transaction gave rise to goodwill of CHF 54.8 million and to the recognition of intangible assets of CHF 49.3 million.
The intangible assets related to client relationships are amortised over a 10 to 20 year period and the intangible
related to the trademark is amortised over 25 years.
Banque Monégasque de Gestion
On November 1, 2006, the Group, through its subsidiary EFG International, acquired 100% of the issued share
capital of the Monaco-based private banking organisation. The transaction gave rise to goodwill of CHF 30.9 million
and to the recognition of intangible assets of CHF 11.1 million. The intangible assets are amortised over a 15 year
period.
Fair value of Other Goodwill for
net assets intangible deferred tax on
(All figures in millions of CHF) Consideration acquired assets intangibles Goodwill
DZI Bank AD 325 46 - - 279
Global Fund Management SA 3 1 - - 2
Best Direct SA - (1) - - 1
C.M.Advisors Limited 336 7 65 - 264
Harris Allday 105 1 49 - 55
Banque Monégasque de Gestion 60 22 11 (4) 31
Other acquisitions 9 - 7 - 2
Total 838 76 132 (4) 634
The above acquisitions have been accounted for by the purchase method of accounting. The acquired companies
contributed a net profit of CHF 48 million to the Group during the period from the date of their acquisition to
December 31, 2006. If the acquisitions had been completed on January 1, 2006, the acquired companies would have
contributed revenue of CHF 155 million and net profit of CHF 57 million for the year ended December 31, 2006.
Included in the CHF 76 million of fair value of net assets acquired are CHF 197 million of cash and cash equivalents.
The initial accounting for some of the business combinations that were effected during the period is presented
provisionally since the determination of the subsidiaries' identifiable assets, liabilities or contingent liabilities, or the
cost of the combinations has not been finalised.
EFG Group