85
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
16.
Investment in subsidiaries (cont’d)
Acquisition of a subsidiary
On 12 November 2014 (the “acquisition date”), the Group acquired 100% equity interest in Sunningdale Singapore Holdings
Pte Ltd (previously known as Anchorage Singapore Holdings Pte Ltd) (“SSH”), an investment holding company holding 100%
of First Engineering Limited (“FEL”) and its subsidiaries (FEL and FEL’s subsidiaries, collectively the “FEL Group”). FEL Group is
principally involved in the manufacture and sale of precision moulds and precision engineering components.
The Group is of view that there is a strategic and operational fit between the Group and SSH Group and this represents an
attractive opportunity for the Group to further strengthen its leadership position in the industry and it provides immediate
access to the Indian market.
As at 31 December 2014, the Group has engaged an independent valuer to determine the fair value of the identifiable assets
and liabilities including intangible assets, property, plant and equipment, inventories and certain liabilities. Negative goodwill
amounting to $4,523,000 has been determined on a provisional basis as the final results of the independent valuation have not
been received by the date of the financial statements. Negative goodwill and other amounts arising from the acquisition will be
adjusted on a retrospective basis when the independent valuation is finalised.
Fair value
recognised on
acquisition
$’000
Property, plant and equipment
65,822
Intangible assets
7,297
Other investments
3
Investment in joint venture
4,876
Deferred tax assets
564
Inventories
26,522
Trade and other receivables
44,669
Amounts due from joint venture
2,171
Prepayments
1,069
Cash and short term deposits
20,697
173,690
Trade and other payables
30,623
Other liabilities
10,173
Loans and borrowings
35,910
Tax payable
2,479
Deferred tax liabilities
5,598
84,783
Total identifiable net assets at fair value
88,907
Provisional negative goodwill arising from acquisition
(4,523)
84,384
Consideration transferred for the acquisition
Cash paid
84,384
Total consideration transferred
84,384
