Ayvens publishes the Purchase Price Allocation of LeasePlan
Ayvens progressed further in the integration of LeasePlan, which is proceeding according to plan.Â
The allocation of LeasePlan’s purchase price to acquired assets and assumed liabilities as at the date of acquisition closing (22 May 2023) led Ayvens to revise upwards the value of LeasePlan’s net assets by c. EUR 230 million, as a result of the assessment of LeasePlan’s assets and liabilities at fair value :
- Lease assets c. EUR +380 million;
- Customer relationshipc. EUR +150 million ;
- Software c. EUR -200 million;
- Other assets and liabilitiesc. EUR -100 million. ​
Subject to any final Purchase Price Allocation and/or acquisition price adjustment within one year from closing , the goodwill recognized on the acquisition is reduced by c. EUR 220 million to c. EUR 1,390 million. This has a positive impact on the CET1 capital of c. EUR 220 million, in line with previous indications.
Without pre-empting any potential impact from the accounting closure of its full year 2023 financial results, Ayvens expects its Q4 and full year 2023 results, whose release is planned for 8 February 2024, to be negatively impacted by:
- Purchase Price Allocation: c. EUR -45 to -65 million (pre-tax) , primarily due to higher rental fleet depreciation as a result of the lease assets’ upwards valuation, whose impact is partially offset by lower software amortization and the recognition of LeasePlan’s actual Used Car Sales results ;
- Accounting Marked-to-Market of derivatives: c. EUR -150 million impact on Leasing contract margin in Q4 2023, as a result of the recent decline in interest rates. ​
While the stock of MtM of the hedging derivatives portfolio was reduced to c. EUR +65 million as at 31 December 2023 (from EUR +216 million as at 30 September 2023), potential changes in interest and foreign exchange rates could lead to some volatility on revenues over the coming quarters.
Read the press release by clicking here