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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 the control over the subsidiary is obtained, whereas, conversely, divestments are included up to the date when the control is lost.

Stora Enso has not acquired any companies or business operations in 2016 or 2017.


Disposal of group companies and business operations
Year Ended 31 December
EUR million 2017 2016
Net Assets Sold
Cash and cash equivalents 7 1
Intangible assets and Property, plant and equipment 3 39
Working capital 1 6
Interest-bearing assets and liabilities -1 3
Non-controlling interest - -4
Net Assets in Divested Companies and Businesses 10 45
Total Disposal Consideration in Cash and Cash in Kind 1 45
Impairment of assets recognised in 20151 - -34
Impairment of assets recognised in 20162 - -11
CTA release - -22
Transaction costs - -4
Total Net Gain/loss -9 -71
Attributable to the owners of the parent -9 -64
Attributable to the non-controlling interest holders - -7
1 Relates to the disposal of Arapoti Mill on 31 March 2016. Impairment was recognised at the signing in December 2015.
2 Relates to disposals of the Arapoti and Kabel Mills.

On 1 November 2017, Stora Enso sold 100% of its shares in the Finnish Puumerkki Oy and the Estonian Puumerkki AS to Mimir Invest AB, a global investment firm. Puumerkki is a specialised wholesaler of wooden building materials. The transaction resulted in a loss of EUR 8 million. The divestment supports Stora Enso’s Wood Products division in focusing on its growth strategy and further building on the strength of its premium portfolio of products and services.

On 5 July 2017, Stora Enso signed an agreement to divest the business and assets of its Swedish subsidiary Stora Enso Re-board AB, a producer of rigid paperboard for expositions and displays, to Culas AB. The transaction did not have a material impact on the Group.

On 24 March 2017, Stora Enso disposed of the shares of the real estate company Sunilan Kesäniemi Oy. The transaction did not have a material impact on the Group.

On 2 January 2017, Stora Enso divested its Finnish subsidiary Formeca Oy, a provider of high-quality machines for automated packaging lines, to Amitec Oy, a specialised engineering and machine construction company based in Finland. The transaction did not have a material impact on the Group.

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 for 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.

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