NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
14
INVESTMENT IN SUBSIDIARIES (CONT’D)
(iii)
Acquisition of subsidiaries
2016
On 11 January 2016 (the “Acquisition Date”), the Company acquired the 100% equity interests of ISOTeam
TMG Pte. Ltd. (formerly known as TMG Projects Pte. Ltd.) to enhance its skillset in high value commercial
interior designs and to expect the synergy value arising from the acquisition. The purchase price allocation
exercise was completed during the financial year ended 30 June 2016.
(a)
The fair value of the identifiable assets and liabilities of the subsidiary acquired as at the acquisition
date were:
Fair value recognised
on acquisition
$’000
Property, plant and equipment
231
Due from customers for contract work-in-progress
358
Intangible assets
1,694
Trade and other receivables
7,396
Cash and bank balances
229
9,908
Trade and other payables
(3,383)
Bank overdraft
(115)
Bank borrowings
(2,187)
Finance lease liabilities
(73)
Deferred tax liabilities
(373)
Tax payables
(3)
(6,134)
Total identifiable net assets at fair value
3,774
Goodwill arising from acquisition
175
3,949
Consideration transferred for the acquisition
Cash paid
2,400
Treasury shares transferred (2,539,683 ordinary shares of the Company)
(note 23(b))
1,549
Total consideration transferred
3,949
Effect of the acquisition of the subsidiary on cash flows
Total consideration for equity interest acquired
3,949
Less: non-cash consideration
(1,549)
Consideration settled in cash
2,400
Less: cash and bank balances of the subsidiary acquired
(229)
Net cash outflows on acquisition
2,171
Treasury shares transferred as part of consideration transferred
In connection with the acquisition of the subsidiary, the Company transferred 2,539,683 treasury
shares with a fair value of $0.61 per share, based on the market price of the ordinary shares at the
Acquisition Date.
91
ISOTEAM LTD.
ANNUAL REPORT 2016
