Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)11. Subsidiaries (cont’d)c) Acquisition of subsidiaries in financial year ended 31 December 2006 (cont’d)ii)Acquisition of additional interests in subsidiaries (cont’d)• Nutri-Active Sdn BhdSubsequent to April 2006, GAL acquired an additional 34% of the issued and paid up capital of NASB fromthe minority shareholders. The purchase consideration was $772,000 and comprises a conversion of amountreceivable from the subsidiary of $641,000 and cash consideration of $131,000 1 . The acquisition resulted inan increase in premium on purchase of minority interests’ shares of $5,000 2 for GAL and for the Group. As at31 December 2006, the total effective interests held in NASB by GAL and the Group are 85% and 69.05%respectively.1The above acquisitions of additional equity interests in these subsidiary companies were to be satisfi ed by adeferred cash settlement of $480,000 (Note 23).2The above acquisitions of additional equity interests from minority shareholders resulted in an increase inpremium on purchase of minority interests’ shares of $6,068,000 (Note 8).d) Acquisition of subsidiaries in financial year ended 31 December 2005During the fi nancial year ended 31 December 2005, the Company acquired the following subsidiaries:Name of companyEffectiveinterestacquiredDate ofacquisition Consideration Note% $’000Global Active Limited 25.6 28 April 2005 14,122 AOSIM (China) Co., Ltd 100 1 December 2005 1,045 B15,167Note ANote BGAL was previously an associated company of the Company who held 40.05% of the shares in GAL. In April2005, the Company acquired another 25.60% of the voting shares of GAL, which resulted in GAL becoming asubsidiary of the Company. Subsequent to 28 April 2005, the Company acquired an additional 1.52% of thevoting shares of GAL (Note 11dii).In December 2005, the Company acquired OSIM (Shanghai) Co., Ltd, a company specialising in sale andmarketing of healthy lifestyle products. Following the acquisition, OSIM (Shanghai) Co., Ltd was renamed asOSIM (China) Co., Ltd. Prior to the acquisition, one of Directors’ spouse held 90% equity interests in OSIM(Shanghai) Co., Ltd.Notes to the Financial Statements 120Annual Report 2006