Notes to the consolidated financial statements
90 Financial statements
6. Acquisitions and disposals of subsidiaries, joint ventures and minority interests
Krusovice and Syabar acquisition
On 4 September 2007 Heineken acquired Kralowsky Pivovar Krusovice a.s. in the Czech Republic from
Radeberger Gruppe KG. The transaction was funded from existing cash resources.
On 28 December 2007, Fleineken acquired the Cypriot holding company of the CJSC Brewing Company
'Syabar', in Bobruysk, Belarus. Heineken acquired Syabar's Cypriot holding company from a consortium
led by Detroit Investments Limited (Cyprus) and from the International Finance Corporation, an affiliate
of the World Bank. The transaction was funded from existing cash resources.
Due to the competitive sensitivity and the non-disclosure agreements with the parties involved, the
acquisition prices of the Krusovice and Syabar acquisition are not individually disclosed.
Effect of Krusovice and Syabar acquisition
The Krusovice and Syabar acquisition had the following effect on Heineken's assets and liabilities on
acquisition date.
In millions of EUR
Pre-
acquisition
carrying Fair value
amounts adjustments
Recognised
values on
acquisition
Property, plant equipment
14
70
50
120
Intangible assets
15
-
17
17
Other investments
8
-
8
Inventories
7
7
Trade and other receivables,
prepayments and accrued income
10
-
10
Cash and cash equivalents
2
-
2
Minority interests
-
(2)
(2)
Loans and borrowings
(9)
-
(9)
Provisions
28
(1)
-
(1)
Deferred tax liabilities
18
(1)
(13)
(14)
Current liabilities
(32)
-
(32)
Net identifiable assets and liabilities
54
52
106
Goodwill on acquisition
15
134
Consideration paid, satisfied in cash
240
Cash acquired
(2)
Net cash outflow
238
The fair values of assets and liabilities have been determined on a provisional basis, as not all information
was available on the balance sheet date.
The amount of goodwill paid relates to synergies Heineken expects to realise. With respect to the
Krusovice acquisition, the synergies to be achieved are a result of a stronger presence in the Czech
market a growth expected that the potential growth opportunities will be realised with the appropriate
commercial investments. Furthermore, it is expected that cost synergies will be realised due to more
efficient purchasing, sourcing and selling, as a result of the integration of these activities within the
region Central and Eastern Europe.
With respect to the Syabar acquisition, the synergies to be achieved are a result of a stronger presence
in the Belarus market, also it is expected that the Belarus market will become a fast-growing market and
by way of this acquisition a platform is established from which it is expected that both the Heineken
brand and imported Russian brands will grow. Furthermore, it is expected that cost synergies will be
realised resulting from more efficient purchasing, sourcing and selling due to the integration of these
activities within the region Central and Eastern Europe.
Heineken N.V. Annual Report 2007
