United Energy Group Limited - HKExnews

UNITED ENERGY GROUP LIMITED
Notes to the Financial Statements
For the nine months ended 31 December 2009
30. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
(a) Acquisition of subsidiaries
On 31 July 2009, the Group acquired 100% of the issued share capital of Merry Year Investments Limited
(“Merry Year”) for a cash consideration of HK$218,000,000. Merry Year was principally engaged in the
provision of patented technologies supporting services to oilfields during the period.
On 17 June 2009, the Group acquired 100% of the issued share capital of PC (NAD) International Limited
(“PCI”) for a cash consideration of HK$167,739,000 (equivalent to US$21,505,000). PCI holds a 10%
participating interest in the Madura PSC contract relating to the right to join and assist BPMIGAS in
accelerating the exploration for and development of the potential resources within the Madura Contract
Area in Indonesia.
The fair value of the identifiable assets and liabilities of the subsidiaries acquired as at its date of acquisition,
which has no significant difference from its carrying amounts are as follows:
Net assets acquired: Merry Year PCI Total
HK$’000 HK$’000 HK$’000
Property, plant and equipment 30,250 – 30,250
Intangible assets 409,343 167,738 577,081
Inventories 36 – 36
Trade and other receivables 5,149 – 5,149
Bank and cash balances 40,210 1 40,211
Trade and other payables (46,060) – (46,060)
Amounts due to minority shareholders (40,000) – (40,000)
Deferred tax liability (87,496) – (87,496)
Total net assets 311,432 167,739 479,171
Minority interests (93,432) – (93,432)
Net assets acquired and total consideration 218,000 167,739 385,739
Net cash outflow arising on acquisition:
Cash consideration paid (218,000 ) (167,739 ) (385,739 )
Bank and cash equivalents acquired 40,210 1 40,211
(177,790 ) (167,738 ) (345,528 )
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