Eng - IOI Group

Notes To The Financial Statements cont’d41. ACQUISITION OF SUBSIDIARIES cont’d41.1 Rinwood Pelita Plantation Sdn Bhd and Rinwood Pelita Quarry Sdn BhdOn 1 September 2006, the Company acquired from Rinwood Oil Palm Plantation Sdn Bhd (“Vendor”) the following:i. 9,100,000 ordinary shares of RM1.00 each representing 70% of the issued and paid-up share capital of RinwoodPelita Plantation Sdn Bhd (“Rinwood Pelita”) for a cash consideration of RM21,446,000; andii.2,100,000 ordinary shares of RM1.00 each representing 70% of the issued share capital in Rinwood Pelita QuarrySdn Bhd (“Rinwood Quarry”) for a cash consideration of RM1,547,000.In addition, the Company also paid RM29,510,000 on behalf of Rinwood Pelita to the Vendor, for the settlement of debtowing by Rinwood Pelita to the Vendor and its associates as at 1 September 2006.Subsequent to the acquisitions, Rinwood Pelita and Rinwood Quarry have changed names to IOI Pelita Plantation Sdn Bhdand IOI Pelita Quarry Sdn Bhd respectively.The acquisition had the following effects on the Group’s assets and liabilities on acquisition date:PreacquisitionFair Recognisedcarrying value values onamount adjustments acquisitionRM’000 RM’000 RM’000Property, plant and equipment 29,416 30,984 60,400Prepaid lease payments 9,499 10,101 19,600Inventories 180 - 180Trade and other receivables 3,100 - 3,100Cash and cash equivalents 158 - 158Trade and other payables (35,849) - (35,849)Long term borrowings (14,910) - (14,910)Deferred tax liabilities - (2,727) (2,727)Net identifiable assets and liabilities (8,406) 38,358 29,952Less: minority interests (8,986)Group’s share of net assets 20,966Goodwill on consolidation 2,027Purchase consideration discharged by cash 22,993Settlement of inter-company loan owing by Rinwood Pelita to the Vendor 29,510Less: cash and cash equivalents of subsidiaries acquired (158)Cash outflow on acquisition of subsidiaries 52,345217ANNUAL REPORT 2007IOI Corporation Berhad