With effect from 27 December 2012 the KION Group sold and deconsolidated its controlling interest of 70 per cent in Linde Hydraulics GmbH & Co. KG, Aschaffenburg (referred to below as Linde Hydraulics), to Weichai Power Co., Ltd., Weifang, China (referred to below as Weichai Power).
Before the disposal, significant assets and liabilities of the former hydraulics business of the KION Group, including land and buildings plus shares in the subsidiaries Linde Hydraulics Ltd., Abingdon, United Kingdom, and Linde Hydraulics Corporation, Canfield, USA, were transferred to Linde Hydraulics. As part of the transaction, Weichai Power granted the KION Group a put option on the remaining shares (30 per cent) in Linde Hydraulics. The KION Group also granted Weichai Power two call options relating to these shares. The put option, which is reported in other financial assets, is measured at fair value. The call options, also measured at fair value, are reported in other financial liabilities.
Non-current assets of €164,669 thousand, current assets of €63,330 thousand, cash and cash equivalents of €3,467 thousand, non-current liabilities of €68,414 thousand and current liabilities of €30,328 thousand were derecognised as a result of the sale.
The gain resulting from this sale (before tax) of €138,276 thousand is the difference between the total consideration received for the hydraulics business including the options (€271,000 thousand) and the carrying amounts of the assets and liabilities disposed of. It is reported on the face of the consolidated income statement as other income.
Linde Material Handling GmbH (referred to below as LMH GmbH) continues to hold the remaining 30 per cent of Linde Hydraulics which is included in the scope of consolidation as an at-equity investment on a going-forward basis. It will be accounted for using the equity method. The gain from the remeasurement of the remaining shares at fair value amounts to €108,692 thousand and is also reported as other income.
