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- 4. Acquisitions of subsidiaries, joint ventures and minority interests6. Discontinued operations and assets held for sale
Notes to the consolidated financial statements
As of December 31, 2008, 2007 and 2006
5.Disposals of subsidiaries and joint ventures
The gains from sales of subsidiaries and joint ventures during the years ended December 31, 2008, 2007 and 2006 were as follows:
| 2008 | 2007 | 2006 | |
| US$ '000 | US$ '000 | US$ '000 | |
| From continuing operations | - | - | 8,099 |
| From discontinued operations | - | 258,346 | 738 |
| Total | - | 258,346 | 8,837 |
Year ended December 31, 2008
In 2008, Millicom did not dispose of any subsidiary or joint venture.
Year ended December 31, 2007
In 2007, Millicom completed the sale of Paktel Limited, for total proceeds of $285 million realising a net gain of $258 million. Millicom incurred costs of $14 million on the transaction and of the net proceeds of $271 million, Millicom received $263 million in 2007 and the remaining $8 million in January 2008 (see note 6).
Year ended December 31, 2006
As part of the sale of Pakcom Limited (see note 6), Millicom transferred in 2006 for $1 of consideration 10% of its ownership in Paktel Limited to the Arfeen Group, reducing Millicom's ownership in Paktel Limited to 88.9%. No gain or loss was recorded on the disposal.
In May 2006, Millicom disposed of its wholly owned subsidiary MIC-USA Inc. for $1. A net gain of $6 million was recognised from the sale and MIC-USA Inc. ceased to be consolidated from the date of sale. As part of the disposal of MIC-USA Inc., Millicom disposed of Great Universal Inc. and Modern Holdings Inc. Although Great Universal Inc. and Modern Holdings Inc. were wholly owned by Millicom, they were not consolidated because of the existence of outstanding warrants that enabled the warrant holder to control Great Universal Inc. and Modern Holdings Inc. These entities were accounted for as financial assets available for sale. Upon disposal, the revaluation reserve was reversed and no gain or loss was recorded on their disposal in 2006.
Millicom sold other minor subsidiaries and other joint ventures, including its operation in Peru which has been treated as a discontinued operation, for $6 million net proceeds resulting in a gain of $3 million. Cash disposed in the sale of those companies amounted to $2 million.
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