NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
17 SUBSIDIARIES (CONT’D)
Analysis of acquisition of a subsidiary:
Acquisition in 2014
On 11 March 2014, Malaysia Smelting Corporation Berhad’s wholly-owned subsidiary, Rahman Hydraulic Tin Sdn. Bhd.
(“RHT”) entered into a Share Sale Agreement and Shareholders’ Agreement for acquisition of an 80% equity interest in SL
Tin Sdn. Bhd. (“SL Tin”) for a purchase consideration of $195,000.
After the acquisition, SL Tin became an 80% owned subsidiary of RHT.
The acquisition of SL Tin has contributed the following results to the Group from the date of acquisition:
Group
2014
$’000
Revenue
–
Profit before tax from continuing operations
4
If the acquisition had occurred on 1 January 2014, the Group’s profit before tax from continuing operations, would have
been reduced by $5,000. There was no revenue from SL Tin in 2014.
Transaction costs of $1,000 related to the acquisition were expensed and included in “other expenses” line item in the
Group’s profit or loss for the year ended 31 December 2014.
The fair values of the net identifiable assets and liabilities of SL Tin as at the acquisition date were:
Group
2014
$’000
Assets:
Other intangible assets (note 16)
573
Trade and other receivables
29
Cash and cash equivalents
9
611
Liabilities:
Trade and other payables
(29)
Net assets acquired
582
Less: Non-controlling interests
(117)
Total cost of acquisition
465
Less: Portion discharged by advances to SL Tin prior to acquisition
(270)
195
106
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
