Note 22 Other income
€ million | 2021 | 2020 |
Amortisation of subsidies | 1 | 1 |
Operating contributions and other income | 34 | 21 |
Lease income from operational leases | 26 | 24 |
Total | 61 | 46 |
Other income in 2021 amounted to €61 million (2020: €46 million). The increase in other income is mainly a result of sale proceeds worth €17 million from the 75% stake in the German entity 450connect GmbH.
Sale of 450connect
On 31 March 2021, Alliander AG sold 58.23% of its shares in its subsidiary 450connect GmbH to a number of German energy companies for a total of €28 million. In July 2021, an additional 16.77% of the shares were sold to the same parties for €8 million, bringing the total proportion of shares sold to 75%.
These German companies serve more than half of the German energy market. The sale of this stake allowed the licence for the 450MHz network to be granted in March 2021, with a term running up to 2040.
The result of the transaction is as follows (€ million):
Sale of 75% of the shares in 450connect GmbH (€ million): | ||
Fair value of the sale of 75% | 36 | |
Fair value of the remaining stake of 25% | 12 | |
48 | ||
Less: Net assets, goodwill and earnout | ||
Net assets | 25 | |
Goodwill | 3 | |
Additional earnout | 10 | |
38 | ||
Profit | 10 |
Specification of remaining stake (€ million) | ||
Fair value of the remaining stake of 25% | 12 | |
25% of the value of the net assets, goodwill and additional earnout | 10 | |
Share in the profit | 2 |