74 NOTE 24 – ASSETS PLEDGED Group Parent 2016 2015 2016 2015 Collateral for provisions and liabilities Property mortgages 525 547 - - Other assets 334 289 - - Total 859 836 - - NOTE 25 – CONTINGENT LIABILITIES Group Parent 2016 2015 2016 2015 Other contingent liabilities 1,547 655 1,547 655 Total 1,547 655 1,547 655 Contingent liabilities refer primarily to counter-guarantees issued for Group companies’ commitments to financial institutions to cover local borrowings. Over and above the contingent liabilities stated above, guarantees for the completion of various contractual undertakings are sometimes involved as part of the Group’s normal business activities. There was no indication at year-end that any contractual guarantees provided will require any payment to be made. NOTE 26 – RELATED-PARTY TRANSACTIONS For the Parent, SEK 95 million (80), i.e. 100 percent (100) of sales were to Group companies. The Parent’s purchasing from Group companies is related to administrative services of limited scope. All transactions were carried out on commercial terms. Transactions with key management personnel Besides those transactions stated in Note 8 Remuneration of the Board of Directors and Senior Executives and in the description of the Board of Directors on pages 28–29, no transactions with related physical persons have taken place. NOTE 27 – ACQUISITIONS California Oils Corporation During the third quarter, AAK acquired all shares in California Oils Corporation, the leading company in speciality and semi- speciality oils on the US West Coast, from Mitsubishi Corporation of Japan. The company has an annual volume of approximately 110,000 MT and had sales of approximately SEK 1,350 million in the last financial year. The company has 65 employees. The assets and liabilities recognized as a consequence of the acquisition are as follows: Fair value (SEK million) Tangible assets 138 Financial assets 3 Inventories 368 Other current assets 115 Cash and cash equivalents 114 Provisions -19 Other current liabilities -184 Total net assets 535 Goodwill -15 Total acquisition with cash and cash equivalents 520 Net outflow of cash and cash equivalents on account of the acquisition Cash and cash equivalents paid for the acquisition 520 Cash and cash equivalents in the company acquired at the acquisition date -114 Impact on the Group's cash and cash equivalents 406 The company forms part of AAK’s sales and operating profit as from September 1, 2016. The acquisition had very limited impact on AAK’s operating profit for 2016.
AAK Annual Report 2016
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