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Note 4 Acquisitions and disposals
Accounting principles
Acquired companies are accounted for under the purchase method whereby they are included in the Consolidated Financial Statements from the date when the control over the subsidiary is obtained, whereas, conversely, divestments are included up to their date when the control is lost.
Stora Enso has not acquired companies or business operations in 2015 or 2016.
Disposal of group companies and business operations
Year Ended 31 December
EUR million 2016 2015
Net Assets Sold
Cash and cash equivalents 1 25
Intangible assets and Property, plant and equipment 39 12
Working capital 6 -14
Interest-bearing assets and liabilities 3 -1
Non-controlling interest -4 -
Net Assets in Divested Companies and Businesses 45 22
Total Disposal Consideration Received in Cash and Kind 45 22
Impairment of assets recognised in 20151 -34 -
Impairment of assets recognised in 20162 -11 -
CTA release -22 -4
Transaction costs -4 -2
Total Net Gain/loss -71 -6
Attributable to the owners of the parent -64 -6
Attributable to the non-controlling interest holders -7 -
1 Relates to disposal of Arapoti Mill on 31 March 2016. Impairment was recognised at signing in December 2015.
2 Relates to disposals of Arapoti and Kabel Mills.
On 1 June 2016 Stora Enso signed an agreement to divest its Kabel coated magazine paper mill in Germany, to Kabel Premium Pulp & Paper GmbH, owned by a German based investor group. The transaction was structured as an asset deal and the cash consideration for the sold assets was EUR 30 million. After closing adjustments the loss on disposal amounted to EUR 9 million consisting of a EUR 5 million operational and a EUR 4 million tax expense. The divestment was completed on 1 September 2016. Majority of Kabel Mill’s approximately 540 employees were transferred to the new owner. Kabel mill was part of the Paper division.

On 31 December 2015, Stora Enso signed an agreement to divest its entire 80% shareholding in the Arapoti magazine paper mill in Paraná, Brazil, to Papeles Bio Bio, a Chilean paper producer. The final consideration for the divestment of the shares was EUR 15 million resulting in a loss of EUR 62 million including cumulative translation adjustments (CTA) and transaction costs. EUR 7 million of the total negative impact was allocated to the non-controlling interest holders. The disposal of Arapoti mill was completed in the first quarter of 2016. EUR 34 million of the total loss was recognised at signing in the fourth quarter of 2015 while EUR 4 million was recorded as customary purchase price adjustments during the first three quarters of 2016. The cumulative translation adjustment loss amounted to EUR 22 million. Transaction costs amounted to EUR 2 million. Arapoti Mill was part of the Paper division.
On 1 October 2015, Stora Enso divested its Barcelona Mill, which produces recycled-fibre based consumer board, to the private equity fund Quantum. The cash consideration for the divestment of the shares was EUR 10 million. The transaction resulted in a loss of EUR 2 million including transaction costs of EUR 1 million. Barcelona was part of the Consumer Board division.

On 30 September 2015, Stora Enso divested its offset printed micro-flute packaging plant in Komárom to Van Genechten Packaging International S.A., a leading Belgian packaging company. The cash consideration for the divestment of the shares was EUR 12 million. The transaction resulted in a loss of approximately EUR 4 million, mainly due to cumulative translation adjustments. Komárom plant was part of the Packaging Solutions division.

In December 2014 Stora Enso signed an agreement to divest Uetersen specialty and coated fine paper mill in Germany to Perusa Partners Fund 2. Following the agreement, the group recorded a EUR 30 million fixed asset and inventory write down in its 2014 Financial Statements. The transaction was completed in February 2015. The impact on the group’s 2015 net result was immaterial. Uetersen mill was part of the Paper division.

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