On 19 April 2024, ARGE Connectivity Systems GbR, a partnership under the German Civil Code (Gesellschaft bürgerlichen Rechts [GbR]) was founded based on a customer request in the framework of a public tender. The control of HUBER+SUHNER is 50% and the company is recognised using the equity method. The net income distribution of the partnership is 70% (HUBER+SUHNER) : 30% between the partnership parties. See chapter Joint Ventures and Investments.
On 1 August 2023, HUBER+SUHNER sold the majority share (51 %) of BKtel Pacific Rim (Japan) Inc, a fully consolidated H+S Group company, to the minority shareholder for a price of CHF 1.1 million, which is equivalent to 51 % of equity. After the deduction of sold net cash (CHF 1.7 million) and the deferred payments to receive (CHF 0.2 million) the net cash outflow was CHF 0.8 million in 2023. In the consolidated Statement of Equity the derecognition of minority interests (49 %) is recognised in the line “change in scope of consolidation”. The year 2023 includes net sales and operating profit until 31 July 2023 while the comparative period includes twelve months. Pro rata net sales 2023 amounted to CHF 1.1 million (net sales 2022: CHF 1.9 million). The transaction resulted in a gain on sale of CHF 0.02 million, which was recognised in 2023 in the position “Other operating income”. BKtel Pacific Rim (Japan) Inc was reported in the Communication segment.
The following net assets were derecognized:
Effect of deconsolidation | Fair Value | |
Cash and cash equivalents | 1 726 | |
Trade receivables | 3 | |
Other short-term receivables | 276 | |
Inventories | 44 | |
Other short-term assets | 63 | |
Property, plant and equipment | 31 | |
Financial assets | 16 | |
Trade payables | (154) | |
Other short-term and accrued liabilities | (125) | |
Derecognised net assets | 1 880 |
In June 2023, the outstanding payment for the acquisition of Phoenix Dynamics Ltd. (acquired in 2022), has been reduced from CHF 1.8 million to CHF 1.5 million as the criteria for deferred payment were not fully achieved. CHF 1.5 million was paid and the goodwill was reduced accordingly by CHF 0.3 million. Phoenix Dynamics Ltd. is reported in the Industry segment.
A complete list of all Group companies can be found in chapter Joint Ventures and Investments.