Axactor Annual Report 2016

Note 25 Other long-term liabilities SEK thousand 2016 2015 Fair value liability to minority option in CS Union 1) 13,811 - Long term accruals 2,696 500 Other long-term debt 16,507 500 1) On the 28th June 2016 Axactor acquired 90% of the shares in CS Union for a cash and share consideration. According to the SPA the following was agreed: ·· A cash consideration of €5.940k ·· 20.84 mill shares in Axactor (€0,18 per share at 28.06.16) €3.829k For the remaining 10%, held by Banca Sistema (BS), a shareholder agreement was entered into between Axactor and BS which includes a put/call option. The put/call clause gives the BS the right to sell the shares to Axactor, and Axactor the right to buy the shares from BS at certain dates in the future or/if certain events occur. These options can be exercised in the period between 1th Jan – 15. Jan each year, starting 2018 and 5 years ahead. Based on the put/call clause in the agreement the terms relating to this gives Axactor ownership interest as the terms are identical for both the put and the call, and it is likely just a question of time before either the put or the call is exercised. Hence, Axactor will account for acquisition on 100% basis and estimate a redemtion amount. This put/call will generate a liability equal to the present value of the redemtion amount and accounted for in the acquirering entity. Note 26 Other current liabilities SEK thousand 2016 2015 Bank overdrafts 8,378 - Client liabilities 7,307 - Public duties 19,173 - Personnel related liabilities 27,108 5,131 Accrued solicitors 4,539 - Accrued interests 4,879 - Other short term interest bearing loans 4,000 4,000 Remaining part purchase considerations 9,814 51,407 Other accruals 8,233 28,035 Total other liabilities 93,431 88,573 Axactor AB | Annual report 2016 57