Annual Report 2003 - Antofagasta plc

Notes to the Financial Statements23 Acquisition (continued)The summarised profit and loss account of ESSAN for the period from 1 January 2003 to 29 December 2003 was as follows:Ch$bnUS$mTurnover 28.3 41.0Operating profit 14.2 20.5Net non-operating income 0.1 0.1Net interest payable (0.6) (0.8)Profit on ordinary activities before tax 13.7 19.8Tax on profit on ordinary activities (1.6) (2.3)Profit on ordinary activities after taxation 12.1 17.5i) The summarised profit and loss account is shown on the basis of ESSAN’s accounting policies prior to theacquisition of the water concession and under Chilean GAAP.ii)ESSAN reports in Chilean pesos and the US dollar figures have been derived by translating the peso amountsat the average rate for 2003.iii)Under the concession contract, the Group did not acquire the cash balances and loans of ESSAN, and therefore thenet interest payable incurred by ESSAN during 2003 is not attributable to the concession now operated by the Group.iv)There were no other material recognised gains and losses attributable to ESSAN during the period from1 January 2003 to 29 December 2003.24 Demerger of Andsberg LimitedANTOFAGASTA PLC Annual Report and Financial Statements 2003On 1 October 2003, shareholder approval was obtained for the demerger of Andsberg Limited (“Andsberg”), an unlistedJersey registered company whose principal asset was the Group’s 33.6% interest in Quiñenco S.A. Following theresolution, ordinary shareholders in Antofagasta plc (“Antofagasta”) received one share in Andsberg for each share heldin Antofagasta on 1 October 2003.The Andsberg shares carried a redemption right until 30 October 2003 at a fixed price of US$1.11 per share. Valid redemptionforms in respect of 58,691,813 shares were received and payment was made on 6 November 2003. Shareholders whorequested payment of redemption proceeds in sterling received 65.4134 pence per share, based on an exchange rate ofUS$1.6969 per share. The redemption was funded by Dolberg Finance Corporation, an entity connected with the Luksic family.84