30. Assets held for sale / liabilities related to assets held for sale
Sale of MIDBAN ESOLUTIONS S.L.
Based on a decision of the METRO AG Management Board on 28 September 2017, METRO plans to sell all shares in MIDBAN ESOLUTIONS S.L., (Midban), Barcelona, Spain, to its founding shareholders as part of the exercise of a right to tender. Since its acquisition in July 2014, Midban has been active in the delivery business as part of the food service distribution business segment of the METRO Wholesale segment.
Until the shares are sold, Midban will remain part of METRO and will contribute to the consolidated result until then. Since the Management Board decision from 28 September 2017, all assets and liabilities of Midban are treated as a disposal group in terms of IFRS 5. An impairment test of these assets and liabilities in terms of IFRS 5 Subsection 18 immediately prior to the classification as “held for sale” did not reveal any need for a depreciation. However, deferred tax assets of €1 million were derecognised through profit or loss. The subsequent measurement of the disposal group at fair value less costs to sell, as defined by IFRS 5 Subsection 15, also resulted in a depreciation of €9 million. After the consolidation of all intragroup assets and liabilities in the consolidated balance sheet as of 30 September 2017, the disposal group is reported under the item assets held for sale or under the item liabilities related to assets held for sale. The composition of the 2 items can be found in the following overview:
€ million |
|
30/9/2017 |
Assets |
|
|
Trade receivables |
|
7 |
Other financial and non-financial assets (current) |
|
1 |
Cash and cash equivalents |
|
3 |
|
|
11 |
Liabilities |
|
|
Other financial and non-financial liabilities (non-current) |
|
2 |
Trade liabilities |
|
9 |
Financial liabilities (current) |
|
1 |
Other financial and non-financial liabilities (current) |
|
3 |
|
|
15 |
Midban’s assets held for sale in the METRO Wholesale segment contribute €7 million to segment assets. The valuation effects incurred as part of the disposal group accounting in terms of IFRS 5 resulted in an EBIT result of €−9 million, which is reported in full under other operating expenses. It is fully accounted for by the EBIT of the METRO Wholesale segment. The process has no impact on the financial result. Income tax expenses of €1 million were recognised. The transaction had no impact on the other comprehensive income.