31. Assets held for sale / liabilities related to assets held for sale

Disposal of the hypermarket business

For several years, METRO has increased its focus on its wholesale business. It intends to intensify this strategy in the future. In consideration of this, the Management Board of METRO AG decided in its meeting on 13 September 2018 to sell the hypermarket business including 80 real estate properties that are being used for this purpose. Most of these are the property of Real. The transaction is proposed to take place in financial year 2018/19.

The hypermarket business consists of 279 stores of the Real segment and their subsidiaries, most of which render procurement and online services for the Real segment.

With the exception of 18 real estate companies and individual properties and a supplier, which are currently included in the Others segment, all assets and liabilities affected by the resolution form part of the Real segment. In accordance with IFRS 5, they are collectively treated as a discontinued business segment from 30 September 2018 onwards and will be treated as such until their deconsolidation or disposal.

As a result of this classification, the consolidation of all intra-group assets and liabilities in the consolidated balance sheet as of 30 September 2018 was followed by the reclassification of €2,580 million to item assets held for sale and €1,691 million to item liabilities related to assets held for sale. The respective asset and liability items to be consolidated were recognised in the corresponding balance sheet items of both the continued and the discontinued segment. As of the end of the financial year, the assets held for sale and the liabilities of the hypermarket business to be disposed of can be broken down as follows:

The effects of the other comprehensive income from assets held for sale and liabilities included in METRO’s equity include an amount of €9 million for components without future income effect, as well as €0 million for components with a potential income effect.

Sale of MIDBAN ESOLUTIONS S.L.

Based on a decision of the Management Board of METRO AG on 28 September 2017, METRO has sold all shares in MIDBAN ESOLUTIONS S.L. (Midban), Barcelona, Spain, to its founding shareholders as part of the exercise of a tender right and with effect on 8 November 2017. The assets held for sale by Midban in relation to the subsequent measurement of the disposal group pursuant to IFRS 5 increased from €11 million to €12 million between 30 September 2017 and the date of deconsolidation of the company. The liabilities related to assets held for sale remain constant at €15 million until their consolidation.

In consideration of the subsequent measurement of all risks relating to the disposal of Midban, the debt consolidation resulted in EBIT-effective earnings of €0 million. The effect of the transaction on the financial result and the income tax result was €0 million. Other comprehensive income was also unaffected by the deconsolidation.

Real estate

The value of individual real estate properties held for sale changed from €0 million to €26 million during financial year 2017/18. This is comprised of €5 million attributable to assets reclassified from fixed assets and €21 million attributable to assets reclassified from investment properties.