Financial statements I Notes to the consolidated financial statements continued
6. Acquisitions and disposals of subsidiaries and non-controlling interests
Acquisition of the beer operations of Sona Group
On 12 lanuary 2011, HEINEKEN announced that it had acquired from Lewiston Investments SA ('Seller') two holding companies which together
own the Sona brewery group. The two holding companies had controlling interests in Sona Systems Associates Business Management Limited ('Sona
Systems'), which held certain assets of Sona Breweries Pic ('Sona') and International Beer and Beverages (Nigeria) Limited ('IBBI'), Champion Breweries
Pic ('Champion'), Benue Brewery Limited ('Benue') and Life Brewery Company Limited ('Life') (together referred to as the'acquired businesses').
Due to the integration of the newly acquired businesses with our existing activities separate financial information on Sona activities is not
The following summarises the major classes of consideration transferred, and the recognised amounts of assets acquired and liabilities assumed
at the acquisition date.
In millions of EUR*
Property, plant equipment
Trade and other receivables
Cash and cash equivalents
In millions of EUR*
Deferred tax liabilities
Loans and borrowings (current)
Tax liabilities (current)
Trade and other current liabilities
Total net identifiable assets
Recognition indemnification receivable
Net identifiable assets acquired
Goodwill on acquisition
Amounts were converted into euros at the rate of EUR/NGN192.6782. Additionally, certain amounts provided in US dollar were converted into euros based on the following exchange rate
The purchase price accounting for the acquired businesses is prepared on a final basis. The outcome indicates goodwill of EUR195 million. The derived
goodwill includes synergies mainly related to the available production capacity.
Goodwill has been allocated to Nigeria in the Africa and Middle East region and is held in NGN. The rationale for the allocation is that the acquisition
provides access to the Nigerian market: access to additional capacity, consolidate market share within a fast-growing market and improved profitability
through synergy. The entire amount of goodwill is not expected to be tax deductible.
Heineken N.V. Annual Report 2011