72
As of January 1, 2006, Deutsche Post World Net sold its 100% interest in McPaper AG, Berlin, Germany, because operating a company in the paper, office and stationery sector is no longer part of the Group’s core competencies.
The sale of Deutsche Post World Net’s 100% interest in Deutsche Post Wohnen GmbH, Bonn, Germany, was completed in January 2006.
As of January 1, 2006, Deutsche Postbank AG took over 850 retail outlets from Deutsche Post AG due to the acquisition of Deutsche Post Retail GmbH. This change in ownership also means that around 9,600 employees will change employer, working directly for Postbank in future. The purchase price for the retail outlets amounted to €986 million.
Following completion of the share purchase agreement concluded with the previous main shareholders of BHW Holding AG, namely BGAG Beteiligungsgesellschaft der Gewerkschaften AG, BGAG Beteiligungsverwaltungsgesellschaft mbH, NH-Beteiligungsverwaltungsgesellschaft mbH and Deutscher Beamtenwirtschaftsbund (BWB) GmbH, on October 25, 2005, Deutsche Postbank AG aquired 137,581,212 BHW shares on January 2, 2006. Taking the capital reduction through retirement of BHW Holding AG’s own shares on December 31, 2005 into account, this corresponds to 82.9% of the share capital and voting rights of BHW Holding AG. With the purchase Deutsche Postbank AG increased its shareholding in BHW Holding AG to 91.04% of the share capital and voting rights and thus acquired a controlling interest in BHW Holding AG in accordance with IAS 27.
On January 26, 2006, Deutsche Postbank AG made a mandatory offer in accordance with section 35(2) of the Wertpapiererwerbs- und Übernahmegesetz (WpÜG - German Securities Acquisition and Takeover Act). The object of the mandatory offer is the acquisition of all no-par value shares of BHW Holding AG.
The purchase price for the 91.04% interest amounted to €1,550 million plus the incidental costs of €17 million so far accrued. The purchase price allocation using identifiable assets, liabilities and contingent liabilities at their fair values will be effected in accordance with IFRS 3. It was not yet completed by the time the consolidated financial statements were prepared.
As the BHW group will prepare IFRS consolidated financial statements for the first time for the period ended December 31, 2005, and these figures were not yet available by the time the consolidated financial statements were prepared, the disclosures required under IFRS 3 were made on the basis of the most recent financial statements available. These are financial statements prepared in accordance with the German commercial code HGB.
| Acquired carrying amounts of BHW assets and liabilities (excl. AHBR) |  |
|---|---|
| €m | Sept. 30, 2005 |
| adjusted | |
| Cash reserve | 103 |
| Loans and advances to other banks | 5,450 |
| Loans and advances to customers | 26,384 |
| Financial assets | 6,679 |
| Property, plant and equipment | 259 |
| Other assets | 12,395 |
| Total assets | 51,270 |
| Due to other banks | 8,933 |
| Due to customers | 20,499 |
| Securitized liabilities | 5,690 |
| Provisions | 2,033 |
| Other liabilities | 12,393 |
| Subordinated debt | 643 |
| 50,191 | |
| Equity | 1,079 |
| Total equity and liabilities | 51,270 |
To expand activities in Central and Eastern Europe, DHL acquired the Czech express service provider PPL on December 21, 2005. This transaction is still subject to approval by the Czech antitrust authorities and is expected to be completed in the first quarter of 2006.
In the freight business, Deutsche Post World Net acquired a 100% equity holding in the forwarding company Multicontainer S.A., Greece, on November 14, 2005. The acquisition became effective on January 1, 2006.
Information on further company acquisitions after the balance sheet date can be found in the Group Management Report under “Further Developments and Outlook”.