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Business combinations refer to acquisitions of businesses in which the Parent Company directly or indirectly obtains control of the acquired business. |
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Business combinations in 2008
Folksam Fond AB On 2 January 2008, Swedbank Robur AB acquired all the shares in Folksam Fond AB. The acquisition was settled in cash. |
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Recognised in the Group on acquisition date, SEKm |
Carried in the Group on acquisition date |
Carried in the acquired entity on acquisition date |
| Assets | 58 | 58 |
| Liabilities | 15 | 15 |
| Subsidiary’s net assets | 43 | 43 |
| Intangible fixed assets, fund management assignments | 583 | |
| Deferred taxes | –163 | |
| Total | 463 | |
| Purchase price paid in cash | 463 | |
| Cash flow | ||
| Acquired cash and cash equivalents in subsidiary | 42 | |
| Cash paid | –463 | |
| Net | –421 | |
| From the acquisition date, the acquired company contributed SEK 14m to profit for the year and SEK 87m to revenues in 2008. | ||
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Other |
Carried in the Group on acquisition date |
Carried in the acquired entity on acquisition date |
| Subsidiary’s net assets | 13 | 13 |
| Acquired minority | –6 | |
| Goodwill | 7 | |
| Total | 14 | |
| Acquisition cost | 14 | |
| Cash flow | ||
| Acquired cash and cash equivalents in subsidiary | 2 | |
| Cash paid | –14 | |
| Net | –12 | |
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On 31 March 2008, Swedbank acquired all the shares in ZAO OKO Capital Vostok. The acquisition cost of SEK 5m was paid in cash. Swedbank AB also acquired 51 percent of the shares in European Agency for Debts Recovery on 31 December 2008.The acquisition cost amounted to SEK 9m and was paid in cash. |
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| Business combinations in 2007 | ||
| OJSC Swedbank | ||
| On 9 July 2007, Swedbank AB acquired all the shares in JSCB TAS-Kommerzbank, whose name was later changed to OJSC Swedbank. In turn, OJSC Swedbank owns all the shares in CJSC TAS-Investbank, whose name was changed to CJSC Swedbank Invest. The acquisition was settled in cash. In addition, a maximum supplemental payment of USD 250m could be paid, though not later than within three years. The supplemental payment is based on the acquired company’s earnings and financial performance and was valued on the acquisition date at USD 125m. The properties included in the business combination were already recognised at fair value in the subsidiary. | ||
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Carried in the Group on acquisition date |
Carried in the acquired entity on acquisition date |
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| Assets | 9 360 | 9 360 |
| Liabilities | 8 448 | 8 448 |
| Subsidiary’s net assets | 912 | 912 |
| Intangible assets, customer base | 243 | |
| Deferred taxes | –61 | |
| Total | 1 094 | |
| Purchase price paid | 4 606 | |
| Estimated supplemental payment | 840 | |
| Transaction expenses | 58 | |
| Acquisition cost | 5 504 | |
| Goodwill | 4 410 | |
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Adjustment of goodwill as a result of cash flow hedging |
157 | |
| Total goodwill | 4 567 | |
| Cash flow | ||
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Acquired cash and cash equivalents in subsidiary |
289 | |
| Cash paid | –4 664 | |
| Net | –4 375 | |
| The goodwill that arose principally reflects the value of anticipated future business volumes and expansion. The value of the customer base was estimated by calculating the present value portion of the future profit margin on existing business volumes. Affter the acquisition date, the acquired company contributed SEK 126m to profit for the year and SEK 558m to revenues in 2007. If the acquisition had occured on 1 January 2007, the company would have contributed SEK 147m to profit for the year and SEK 897m to revenues. | ||
| Söderhamns Sparbank AB | ||
| On 28 February 2007, Swedbank AB acquired the remaining 60 percent of the shares in Söderhamns Sparbank AB, which thereby become a wholly owned subsidiary as of the same date. Previously, the company was consolidated as an associate. Söderhamns Sparbank AB was merged in 2007 with Swedbank AB, effective 28 February 2007. | ||
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Carried in the Group on acquisition date |
Carried in the acquired entity on acquisition date |
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| Assets | 1 159 | 1 159 |
| Liabilities | 1 044 | 1 039 |
| Subsidiary’s net assets | 115 | 120 |
| Previously consolidated equity as associate | –48 | |
| Surplus value lending | 14 | |
| Intangible fixed assets customer base | 41 | |
| Other | 12 | |
| Deferred taxes | –19 | |
| Total | 115 | |
| Purchase price paid | 117 | |
| Acquisition cost | 117 | |
| Goodwill arising from acquisition | 2 | |
| Goodwill arising from previous acquisitions | 22 | |
| Total goodwill | 24 | |
| Cash flow | ||
| Acquired cash and cash equivalents in subsidiary | 5 | |
| Cash paid | –117 | |
| Net | –112 | |
| The goodwill that arose principally reflects the value of anticipated future business volumes and expansion. Lending was valued as if the asset had been acquired separately. The value of the customer base was estimated by calculating the present value portion of the future profit margin on existing business volumes. After the acquisition date, the acquired company contributed SEK 16m to profit for the year and SEK 42m to revenues in 2007. If the acquisition had occured on 1 January 2007, the company would have contributed SEK 18m to profit for the year and SEK 50m to revenues. | ||
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Other |
Carried in the Group on acquisition date |
Carried in the acquired entity on acquisition date |
| Subsidiary’s net assets | 4 | 4 |
| Goodwill | 24 | |
| Total | 28 | |
| Acquisition cost | 28 | |