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27 Assets and liabilities held for sale

Assets and liabilities held for sale – SEI S.p.A.

SEI S.p.A. is developing a project to construct a coal-fired power plant in Saline Joniche using the most advanced technology on the market. The Repower Group signed an agreement to sell part of the SEI S.p.A. project company and already classified it as held-for-sale in the previous year. In terms of interests in coal-fired power plants, Repower will be adhering to the overall strategic approach formulated by the government of Canton Graub√ľnden, its majority shareholder, in 2013. This owner strategy, combined with overall developments in the environment, has prompted a resolution from Repower's Board of Directors not to consider any more interests in coal-fired generation plants. Repower will withdraw from the Saline Joniche project on a controlled basis by the end of 2015 at the latest while complying with the contractual obligations that are in place. Under IFRS 5, assets and liabilities (disposal group) held for sale are measured at the lower of the carrying amount and fair value less costs to sell.

The fair value is the price that would have to be obtained or paid in a regular transaction between market participants on 31 December 2013 upon the transfer of SEI S.p.A. The purchase price will be determined on the basis of the probability of the expected profitable implementation and expected cash inflows from the operation of the project and the power plant as at 31 December 2013. Determining a fair value currently involves a great deal of uncertainty. Due to the uncertain market environment and the continued low energy prices feared in the future, third parties would currently assume the probability of the project's implementation as being low and factor this in when determining the purchase price, and as a result attribute no material value to the project.

Due to indications of impairment, an impairment loss of TCHF 11,663 was ascribed to the tangible assets of the disposal group. This impairment is recognised in the consolidated income statement under “other operating expenses”. The disposal group belongs to the Market Italy business segment.

In view of the assets and liabilities to be transferred until the transaction is finally completed, the values listed in the following table as at 31 December 2013 are to be considered provisional:

  31.12.2013 31.12.2012
     
Tangible assets - 9,349
Deferred tax assets - 3,663
Receivables 760 1,818
Accrued income and prepaid expenses 6 6
Cash and cash equivalents 71 1,015
Assets held for sale 837 15,851
     
Non-current financial liabilities - 7,755
Current financial liabilities 7,856 -
Other current liabilities 1,057 1,087
Deferred income and accrued expenses 181 74
Liabilities held for sale 9,094 8,916

The foreign currency differences of the SEI S.p.A that are contained in equity amount to TCHF 1,135 for the Repower Group and TCHF 564 for the non-controlling interests.

Assets and liabilities held for sale – Repower Transportnetz AG

Repower Transportnetz AG was classified as held for sale until 3 January 2013. More information on the completed disposal can be found in the section “Business combinations and disposals”. The previous year's balances can be found in the table below.

  31.12.2012
   
Tangible assets 82,646
Inventories 72
Receivables 3,506
Cash and cash equivalents -
Assets held for sale 86,224
   
Deferred tax liabilities 12,019
Other current liabilities 189
Deferred income and accrued expenses 106
Liabilities held for sale 12,314