83
2013
Annual Report
19
The Basque Government-Eusko Jaurlaritza, at a session held on 17 July 2012 and in compliance with the revised
Equity Law of Euskadi, approved by Decree Law 2/2007 of 6 November 2007, agreed to seek the Basque
Parliament's authorisation to transfer the excess telecommunications network and infrastructure owned by the
Basque regional government to the Company for a sale price of Euros 68,000 thousand, based on the appraisal
of an independent expert. This network, which mainly comprises underground channels, had been leased to the
Company since its incorporation, and represented a rental cost of approximately Euros 3.3 million in 2012.
On 13 August 2012, the Basque Parliament's Commission on Economy, Finance and Budget authorised this
transfer, after which, the corresponding order for divestiture was issued by the Minister of Economy and
Finance on 21 September 2012. The Company finally acquired the aforementioned telecommunications network
through a deed of sale and purchase signed by both parties on 20 December 2012. This purchase was paid in
full upon signing of the deed of sale and purchase, for which the Company increased its capital by Euros 54,413
thousand, with a share premium of Euros 13,587 thousand.
In 2013 the Company has capitalised Euros 147 thousand in finance costs (Euros 259 thousand in 2012) deriving
from external financing obtained to roll-out the network, calculated using a capitalisation rate of 3.35% in
2013, equivalent to the average effective cost of the external financing during the year.
In 2013 costs of Euros 2 million relating to network roll-out activities have been capitalised (Euros 3.4 million in
2012).
The cost of fully depreciated property, plant and equipment in use at at 31 December 2013 is Euros 221.6
million (Euros 202.1 million in 2012).
At 31 December 2013 and 2012 there are no items of property, plant and equipment pledged to secure
financial liabilities and sufficient insurance policies have been taken out to cover the risk of damage to
property, plant and equipment.
