Consolidated  Notes to the  Financial  Statements 106 Note 43 – Acquisition of subsidiaries and businesses 2012 Acquisition of Great Energy Alliance Corporation Pty Limited Fair value of pre-existing interest in GEAC Deferred consideration As part of the purchase agreement with four of the previous shareholders of GEAC, a deferred consideration arrangement has been agreed  to. The consolidated entity will pay the four parties the deferred consideration in the form of an annuity stream over 15 years. As at the acquisition date, the fair value of the deferred consideration was estimated to be $248.2 million, using a discount rate of 7.6%. On 29 June 2012, the consolidated entity completed the acquisition of the remaining 67.46% of the voting shares in, and loan notes issued  by, Great Energy Alliance Corporation Pty Limited (GEAC), increasing its ownership from 32.54% to 100%. The consolidated entity also  acquired 100% of the voting shares in Loy Yang Marketing Holdings Pty Limited. The consideration paid was $598.0 million, and comprised the fair value of the consolidated entity’s pre-existing interest in GEAC of  $150.0 million, deferred consideration payable of $248.2 million and cash of $199.8 million. GEAC owns the 2,210 MW Loy Yang A power station and the adjacent brown coal mine which supplies all the coal required to meet the  current and future operating requirements of the power station. Loy Yang A power station is Victoria’s largest power station, producing  30% of the State’s electricity requirement, and is one of the lowest cost generators in the National Electricity Market. Acquisition-related costs amounting to $12.9 million have been excluded from the consideration paid and have been recognised as an  expense in the year, within the ‘other expenses’ line item in the income statement. From the date of acquisition, GEAC has contributed $nil to the revenue and $nil to the profit before tax of the consolidated entity. It is  considered impracticable to estimate what the revenue and profit before tax of the consolidated entity would have been if the acquisition  had been effected at 1 July 2011. Prior to completing the GEAC acquisition, AGL’s 32.54% interest in GEAC was accounted for as an equity investment. Under AASB 3  Business Combinations , the pre-existing equity interest is required to be remeasured at the acquisition date fair value with the resulting gain  or loss recognised in the income statement.  The remeasurement to fair value of AGL’s existing 32.54% interest in GEAC resulted in a loss of $120.7 million, which has been included in  other expenses in Note 7. AASB 3 also requires that any amounts previously recognised in other comprehensive income are reclassified to the income statement.  AGL’s share of losses recognised in the hedge reserve and other reserve at date of acquisition of $36.3 million have been reclassified to  the income statement and are included in other expenses in Note 7. $m  Share of loss in hedge reserve reclassified 36.2  Share of loss in other reserve reclassified 0.1  Share of losses reclassified to the income statement 36.3 $m  Carrying value of equity accounted investment at the acquisition date (Note 18) 144.2  Carrying value of loan notes at the acquisition date (Note 50) 126.5  Carrying value of pre-existing interest 270.7  Fair value of pre-existing interest at the acquisition date 150.0  Loss on remeasurement to fair value of pre-existing interest 120.7