On 8 June 2007, Deutsche Post World Net acquired 49% of the shares and 24.9% of the voting rights of US airline ASTAR Air Cargo Holdings LLC (Astar) for a purchase price amounting to €66 million. In accordance with SIC 12, the company was fully consolidated. Owing to past business arrangements, Astar aircraft had already been included in the consolidated financial statements since 1 January 2006 as finance leases in accordance with IFRIC 4 in conjunction with IAS 17. Those aircraft were therefore included in the consolidated financial statements at their existing carrying amounts. Astar’s principal activity is the provision of services for Group companies.
|
|
|
|---|---|---|
€m |
8 June 2007 |
|
Cost of the investment |
66 |
|
Transaction costs |
1 |
|
Total cost |
67 |
|
Less proportionate net assets measured at fair value (49%) |
–11 |
|
Goodwill |
78 |
|
|
|
|||||
|---|---|---|---|---|---|---|
€m |
Carrying amount |
Adjustments |
Fair value |
|||
Intangible assets (customer list) |
10 |
–4 |
6 |
|||
Receivables from finance leases (aircraft) |
65 |
0 |
65 |
|||
Other property, plant and equipment |
5 |
0 |
5 |
|||
Non-current financial assets |
1 |
0 |
1 |
|||
Current assets and cash and cash equivalents |
68 |
0 |
68 |
|||
Non-current liabilities and provisions |
–94 |
0 |
–94 |
|||
Current liabilities and provisions |
–87 |
0 |
–87 |
|||
Deferred tax assets, net |
12 |
2 |
14 |
|||
Net assets acquired |
–20 |
–2 |
–22 |
|||
On 26 September 2007, Deutsche Post World Net and Deutsche Lufthansa AG launched a joint cargo carrier, AeroLogic GmbH (AeroLogic), through their subsidiaries DHL Express und Lufthansa Cargo. The company’s registered office is located in Leipzig. DHL Express and Lufthansa Cargo each hold 50% of the shares. In future, AeroLogic will provide cargo services to and from Asia. Flight operations are scheduled to begin in April 2009. Initially, eight aircraft are being leased under the terms of operating lease agreements for this purpose. The resulting financial obligations will be reported from the beginning of the lease term (January 2009) under other financial obligations. AeroLogic’s lease counterparty and lessor is Deucalion Capital VII Ltd., Cayman Islands.
On 25 June 2007, Deutsche Post World Net acquired a 49% interest in US company Polar Air Cargo Worldwide, Inc. (Polar Air Cargo), a leading provider of global air freight services. Polar Air Cargo is included in the consolidated financial statements as an associate. The total purchase price, including a post-acquisition adjustment, amounts to €129 million, of which €56 million was paid on completion of the transaction and €16 million in November 2007. The balance of the purchase price will be paid on 15 January 2008 and on 17 November 2008. In addition, DHL is to conclude a twenty-year fixed capacity agreement with Polar Air Cargo, guaranteeing it a certain amount of capacity on routes to major Asian destinations.
