Annual Report 2011-2012

21. 2.0% Mandatory Convertible Securities France

21. 2.0% Mandatory Convertible Securities France
in CHF thousand 31.3.2012 31.3.2011
     
Balance Sheet items    
Amount of debt – interest 1 3 719 5 714
Amount of equity 2 47 140 47 140
     
Income statement    
Coupon 2.0% MCS –861 –949
Amortized interest 1 618 617
Total interest expense –243 –332

1Under IFRS, the amortized cost method requires that only the interest payment on the amount of debt, currently CHF 3.7 million (prior year CHF 5.7 million) be recorded as interest expense. The amount of debt simultaneously declines since the payment reduces the cash value of the interest payments to be made. The interest debt component is part of the balance sheet item “Mandatory Convertible Securities”.

2The equity component of CHF 47.1 million (prior year CHF 47.1 million) is shown in equity as part of non-controlling interests and is unchanged from the prior year. The currency tranlsation adjustment is part of the currency translation adjustment on non-controlling interests.

On 7 August 2007, Züblin Immobilière France SA issued 10-year Mandatory Convertible Securities for EUR 35.5 million. The 2.0% Mandatory Convertible Securities are held in their entirety by Montalcino S.à.r.l., a company controlled by the Forum Group. At the current conversion price the securities can be converted into 2 656 250 shares. Under the terms of the 2% Mandatory Convertible Securities 07/17, the holder has the right to convert the securities at any time after 7 August 2008. Once the term expires on 7 August 2017, the securities must be converted. The holder is entitled to a minimum interest level of 2%, but has the right to receive the same level of dividend distributions, or distributions from free or capital reserves, as existing shareholders.

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Annual Report 2011-2012

Annual Report 2011-2012 (8.16 MB)