26. Discontinued operations
On 23 November 2020 we signed a share purchase agreement with Selvita S.A. in relation to the disposal of Fidelta d.o.o. (our previous fee-for-service segment). We have classified the assets and liabilities of Fidelta as held for sale in our financial statements for the year ended 31 December 2020.
The transaction was completed on 4 January 2021 for a total consideration of €37.1 million. Fidelta will continue performing drug discovery services for us for the next four years for which we have purchase commitments for an aggregate amount of €19.3 million on 31 December 2021.
(i) Disposal of Fidelta
a. Consideration received
(thousands of €) |
|
|---|---|
Cash received |
37,080 |
Total consideration received |
37,080 |
b. Analysis of assets and liabilities over which control was lost
(thousands of €) |
4 January 2021 |
|---|---|
Intangible assets |
21 |
Property, plant and equipment |
10,050 |
Other non-current assets |
160 |
Trade and other receivables |
4,428 |
Cash and cash equivalents |
7,884 |
Other current assets |
863 |
Total assets |
23,406 |
|
|
Non-current lease liabilities |
4,115 |
Other non-current liabilities |
70 |
Trade and other liabilities |
4,479 |
Current lease liabilities |
727 |
Current tax payable |
356 |
Total liabilities |
9,747 |
|
|
Net assets disposed of |
13,658 |
c. Gain on disposal
(thousands of €) |
|
|---|---|
Cash received |
37,080 |
Net assets disposed of |
(13,658) |
Effect of cumulative translation adjustments reclassified from equity on loss of control |
(731) |
Costs associated to the sale |
(500) |
Gain on disposal |
22,191 |
d. Net cash proceeds from disposal of Fidelta
(thousands of €) |
|
|---|---|
Cash received |
37,080 |
Less: cash and cash equivalents balances disposed of |
(7,884) |
Total consideration received, net of cash disposed of |
29,196 |
Costs associated to the sale |
(500) |
Cash in from disposal of Fidelta, net of cash disposed of |
28,696 |
(ii) Result from discontinued operations
|
Year ended 31 December |
|
|---|---|---|
(thousands of €, except share and per share data) |
2021 |
2020 |
Fee-for-services revenue |
- |
16,140 |
Total net revenues |
- |
16,140 |
|
|
|
Gain on sale of subsidiaries |
22,191 |
- |
|
|
|
Research and development expenditure |
- |
(7,685) |
General and administrative expenses |
- |
(2,000) |
|
|
|
Operating profit |
22,191 |
6,455 |
|
|
|
Other financial income |
- |
179 |
Other financial expenses |
- |
(176) |
|
|
|
Profit before tax |
22,191 |
6,458 |
|
|
|
Income taxes |
- |
(893) |
|
|
|
Net profit |
22,191 |
5,565 |
|
|
|
Basic income per share from discontinued operations |
0.34 |
0.09 |
Diluted income per share from discontinued operations |
0.34 |
0.08 |
Weighted average number of shares - Basic |
65,500 |
65,075 |
Weighted average number of shares - Diluted |
65,831 |
67,572 |
(iii) Cash flow from discontinued operations
|
Year ended 31 December |
|
|---|---|---|
(thousands of €) |
2021 |
2020 |
Net cash flows generated from operating activities |
- |
7,173 |
Net cash flows generated from/used in (-) investing activities |
28,696 |
(2,284) |
Net cash flows used in financing activities |
- |
(664) |
Net cash flows from discontinued operations |
28,696 |
4,225 |