7. Investments accounted for using the equity method

Details are as follows:

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(a) The interest previously held was classified in investments measured at fair value.
(b) Company controlled directly by EXOR following the FCA spin-off transaction completed on January 3, 2016.
(c) Reclassified in accordance with IFRS 5 on the basis of the sales agreement signed on May 13, 2016.
(d) Sold to PartnerRe on April 8, 2016 on the basis of EXOR’s share of consolidated equity at March 31, 2016.

EXOR completed the acquisition of PartnerRe on March 18, 2016 and became indirectly, through EXOR N.V., the holder of 100% of common share capital.

The total disbursement by EXOR was $6,108 million (€5,415 million) of which $6,065 million (€5,377.7 million) was paid to common shareholders and $43 million (€37.7 million) to preferred shareholders.

The interest previously held (9.9% of capital) that was classified in investments available-for-sale and measured at fair value with recognition of the changes in fair value in equity,was adjusted to the fair value at the acquisition date of control, equal to $137.50 per share (total of €576.1 million) resulting in a decrease in  equity of €30.5 million compared to December 31, 2015. Furthermore, following the change in the valuation method the positive fair value reserve, €22.9 million, was reclassified to the income statement. The entire investment in PartnerRe was classified in investments accounted for using the equity method and the measurement at June 30, 2016 is based on the consolidated accounting information for the period March 18, to June 30, 2016. The carrying amount of the investment includes goodwill of $660 million (€595 million).

The positive change in EXOR’s investment in FCA is mainly attributable to the net profit for the period pre-consolidation adjustments (+€228.3 million), partially offset by the decrease in exchange differences on translation (-€57 million) and the cash flow hedge reserve (-€27 million), as well as the spin-off of Ferrari by FCA and the distribution of RCS MediaGroup shares to the shareholders of FCA (total of €28.4 million).

The negative change in EXOR’s investment in CNH Industrial can be ascribed primarily to the payment of dividends of €49.1 million and the decrease in the cash flow hedge reserve (€5.4 million), partially offset by EXOR’s positive share of the result of €22.5 million (adjusted by eliminating the charge relating to the investigation conducted by the European Commission and recorded by CNH Industrial, in that the charge had already been recognized by EXOR in the 2015 financial statements), as well as positive exchange differences on translation of €19.5 million.

The negative change in EXOR’s investment in The Economist Group is mainly due to the share buyback transaction (€105.3 million) and exchange differences (€51.2 million), partially offset by the profit for the period (€27.1 million).

Commercial Register No.64236277 Legal notes | Credits