ANNUAL REPORT 2008 - KNM Steel Sdn Bhd
ANNUAL REPORT 2008 - KNM Steel Sdn Bhd
ANNUAL REPORT 2008 - KNM Steel Sdn Bhd
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NOTES TO THE<br />
FINANCIAL STATEMENTS (CONT’D)<br />
32. Acquisition of subsidiaries and minority interest<br />
32.1 Business combination<br />
During the financial year, the Group completed the acquisition of the following companies:<br />
i) BORSIG Beteiligungsverwaltungsgesllschaft mbH and its subsidiaries in June <strong>2008</strong>, for a cash<br />
consideration of RM1,772,872,000 (EUR 351,921,000).<br />
ii)<br />
HZM Group of companies in October <strong>2008</strong>, for a cash consideration of RM45,531,000<br />
(BRL27,241,000).<br />
The principles activities of the subsidiaries acquired are shown in Note 31 of the financial statements.<br />
During the year ended 31 December <strong>2008</strong>, these subsidiaries contributed profit of RM249,373,000. If the<br />
acquisition had occurred on 1 January <strong>2008</strong>, management estimates that consolidated revenue would<br />
have been RM3,362,729,000 and consolidated profit for the year would have been RM404,658,000.<br />
The acquisition had the following effect on the Group’s assets and liabilities on acquisition date:<br />
Pre-acquisition Fair value Recognised values<br />
carrying amounts adjustments on acquisitions<br />
Note <strong>2008</strong> 2007 <strong>2008</strong> 2007 <strong>2008</strong> 2007<br />
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000<br />
Property, plant<br />
and equipment 3 114,854 – 42,820 – 157,674 –<br />
Intangible asset 4 2,191 – 892,177 – 894,368 –<br />
Investment in associates 7 1,969 – – – 1,969 –<br />
Other investments 8 130 – – – 130 –<br />
Deferred tax assets 9 12,945 – – – 12,945 –<br />
Inventories 33,426 – – – 33,426 –<br />
Receivables, deposits<br />
and prepayments 294,764 – 1,239 – 296,003 –<br />
Cash and cash equivalents 209,494 – – – 209,494 –<br />
Loans and borrowings (101,047) – – – (101,047) –<br />
Long term payables (7,802) – – – (7,802) –<br />
Deferred tax liabilities 9 (70,696) – (280,499) – (351,195) –<br />
Payables and accruals (236,046) – – – (236,046) –<br />
Current tax liabilities (32,074) – – – (32,074) –<br />
Net identifiable<br />
assets and liabilities 222,108 – 655,737 – 877,845 –<br />
Minority interest (6,117) –<br />
Goodwill on acquisition 4 946,675 –<br />
Consideration paid,<br />
satisfied in cash 1,818,403 –<br />
Cash acquired (209,494) –<br />
Net cash outflow 1,608,909 –<br />
<strong>KNM</strong> GROUP BERHAD<br />
116<br />
<strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2008</strong>
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