34. Spin-off of the Paper Division

The company’s shareholders resolved at the Extraordinary General Meeting of 20 June 2024 to create two separate companies: CPH Group AG (the former CPH Chemie + Papier Holding AG) and Perlen Industrieholding AG. The separation was effected by spinning off the paper business by means of a capital reduction and the distribution of a dividend-in-kind under which, effective 25 June 2024, every CPH Group AG shareholder was awarded one registered share of Perlen Industrieholding AG for every CPH Group AG share held.

As a result of the spin-off, the following companies left the scope of consolidation of CPH Group AG:

  • Perlen Papier AG, Root, Switzerland
  • APS Altpapier Service Schweiz AG, Root, Switzerland
  • Perlen Deutschland GmbH, Munich, Germany
  • Perlen Immobilien AG (formerly CPH Immobilien AG), Root, Switzerland
  • Perlen Papier Immobilien AG, Root, Switzerland
  • Hotel & Gasthaus Die Perle AG, Root, Switzerland.

The net sales and earnings of the spun-off Paper Division up until its spinning-off with effect from 25 June 2024 are shown in Note 1, Segment information.

The following table shows the carrying values of the assets and liabilities of the spun-off entity:

in CHF thousand

Cash and cash equivalents

69 166

Trade receivables

24 872

Other receivables

4 497

Inventories

28 234

Prepayments and accrued income

3 213

Tangible fixed assets

104 668

Financial assets

38 220

Intangible assets

1 785

Trade payables

‑ 45 083

Other current liabilities

‑ 3 298

Accrued expenses and deferred income

‑ 5 297

Other non-current liabilities

‑ 48

Non-current provisions

‑ 8 986

Net assets derecognized

211 943

With total net assets derecognized of CHF 211.9 million plus goodwill recycled from equity and cumulative currency translation differences of CHF 20.9 million on the one hand and the CHF 210.5 million net market value of the capital reduction/distribution-in-kind on the other, a difference resulted of CHF 22.3 million. This amount was taken to the consolidated income statement as non-cash result from the spin-off activity.