85
Notes to the Consolidated Financial Statements (continued)
Acquisition of Punch
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
The main cause for the adjustments is that HEINEKEN had a short period to determine the opening balance, the complexity of the business and
the high number of existing labour, civil and tax claims acquired. Per 31 December 2017 the provisional accounting period has been closed for all
assets and liabilities, except for completion of the assessment on labour, tax and civil claims acquired given the aforementioned reason.
The goodwill is attributable to earnings beyond the period over which intangible assets are amortised, workforce, expected synergies and future
customers. The goodwill for Brasil Kirin could potentially be tax deductible in the future.
On 15 December 2016, HEINEKEN announced that following Vine Acquisitions Limited's announcement of a recommended cash offer for Punch
Taverns plc ('Punch'), HEINEKEN through HEINEKEN UK had agreed a back-to-back deal with Vine Acquisitions to acquire Punch Securitisation
A ('Punch A'), comprising approximately 1,900 pubs across the UK. The transaction completed on 29 August 2017 as from which date Punch is
consolidated within HEINEKEN. HEINEKEN believes that there is compelling strategic rationale for enlarging its existing pub business through the
acquisition of Punch A. HEINEKEN considers pubs to be an integral part of British culture and believes that high-quality, well invested pubs run by
skilled and motivated operators will continue to prosper.
HEINEKEN has paid an aggregate consideration of GBP308 million (€331 million) for all shares in Punch A. This consideration is mainly paid
in cash.
The following table summarises the consideration transferred and the recognised amounts of assets acquired and liabilities assumed at the
acquisition date:
In millions of Punch
Property, plant and equipment
1,349
Intangible assets
25
Inventories
1
Cash and cash equivalents
47
Other assets
74
Assets acquired
1,496
Short-term liabilities
1,154
Long-term liabilities
11
Liabilities assumed
1,165
Total net identifiable assets
331
In millions of
Consideration transferred
331
Net identifiable assets acquired
331
Goodwill on acquisition -
HEINEKEN considers the measurement period for the acquisition of Punch to be closed as per 31 December 201 7. Any adjustments afterwards will
be recognised in the consolidated income statement.
In total €37 million of acquisition-related costs have been recognised for Kirin and Punch in the income statement for the period ended
31 December 201 7.
The amount of revenue for the acquisition of Brasil Kirin and Punch after obtaining control amounts to €684 million and €97 million respectively;
the amount of profit recognised after obtaining control amounts to €1 7 million and €28 million respectively. Would the acquisitions have taken
place on 1 January 201 7, revenue and profit for HEINEKEN would have been €22.4 billion and €2.1 billion respectively.