This part records the impact that acquisitions related to the bio-healthcare business have had on Konica Minolta assets and liabilities.
As of the end of December, the acquisition of the two companies produced an increase of ¥128.2 billion in goodwill and intangible assets. Ambry was acquired as a joint investment with the Innovation Network Corporation of Japan (INCJ). The ownership ratio of Konica Minolta is 60%, and that of INCJ is 40%. The 40% INCJ share has put options attached, so under IFRS accounting, this 40% share is transferred to a financial liability. As explained in the announcement of August last year, part of the acquisition financing was obtained in the form of hybrid loans. These loans have an intermediate nature partaking of both capital and liability, and although they are liabilities, they have qualities and characteristics causing them to resemble capital, such as optional deferral of interest payments, extremely long repayment periods, subordination in bankruptcy proceedings, and so on. As a result, the loan has been recognized by the Rating and Investment Information, Inc., and by the Japan Credit Rating Agency, Ltd., as having equity credit on 50% of the funding, resulting in an equity ratio of 46.9% according to their rating.
As of the end of December, the acquisition of the two companies produced an increase of ¥128.2 billion in goodwill and intangible assets. Ambry was acquired as a joint investment with the Innovation Network Corporation of Japan (INCJ). The ownership ratio of Konica Minolta is 60%, and that of INCJ is 40%. The 40% INCJ share has put options attached, so under IFRS accounting, this 40% share is transferred to a financial liability. As explained in the announcement of August last year, part of the acquisition financing was obtained in the form of hybrid loans. These loans have an intermediate nature partaking of both capital and liability, and although they are liabilities, they have qualities and characteristics causing them to resemble capital, such as optional deferral of interest payments, extremely long repayment periods, subordination in bankruptcy proceedings, and so on. As a result, the loan has been recognized by the Rating and Investment Information, Inc., and by the Japan Credit Rating Agency, Ltd., as having equity credit on 50% of the funding, resulting in an equity ratio of 46.9% according to their rating.