8. Other non-current financial assets – Investments measured at fair value

These are investments available-for-sale. Details are as follows:

  12/31/2014   12/31/2013      
€ million %   Carrying amount   %   Carrying amount   Change  
Banca Leonardo S.p.A. 17.37   60.0   17.37   76.0   (16.0)  
Banijay Holding S.A.S. 17.09   41.0   17.09   37.0   4.0  
The Economist Group 4.72   40.4   4.72   37.0   3.4  
NoCo A L.P. 2.00 (a) 17.5   2.00 (a) 16.0   1.5 (b)
Sequana S.A. 10.85   14.6   17.38   24.8   (10.2)  
Other     176.7 (c)     177.0 (c) (0.3)  
Total     350.2       367.8   (17.6)  
(a) Percentage ownership interest in the limited partnership, measured at cost. (b) Exchange differences on translating foreign operations. (c) Relates to listed investments (€173.5 million at December 31, 2013).

The decrease in the investment in Banca Leonardo is due to the negative fair value adjustment of €11.2 million (with recognition in equity) and the reimbursement of reserves of €4.8 million.

The increase in the investment in Banijay Holding arises from the positive fair value adjustment of €4 million (with recognition in equity).

The increase in the investment in The Economist Group is attributable to the positive fair value adjustment of €3.4 million (with recognition in equity).

At June 30, 2014 the investment in Sequana was adjusted to fair value on the basis of the per share trading price at that date (€4.08 per share) for a total of €7.1 million. The negative fair value reserve recognized in equity was at the same time reclassified to the income statement, as set out in IAS 39, deeming the capital increase operation and the trend of the share price determining factors in evaluating the existence of an impairment such as to justify the recognition in the income statement of a correction of the investment value for a total expense of €26.9 million.

On July 26, 2014 EXOR S.A. subscribed to Sequana’s share capital increase for a total payment of €11.1 million and in the following months sold on the market 3,158,313 shares for a total equivalent amount of €9.1 million, recording a net loss of €1.4 million.

The total impairment charge recognized in the income statement in 2014 is €30.6 million and includes the fair value adjustment in 2014 of €10.8 million and the reclassification to the income statement of the fair value reserve at December 31, 2013 of €19.8 million.

At December 31, 2014 the remaining 5,537,687 shares were measured at fair value on the basis of the per share trading price at December 31, 2014 (€2.64 per share), recording an additional correction in value of €3.7 million owing to the continual reduction in the share’s trading price. 

 

Commercial Register No.64236277 Legal notes | Credits