NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
14
INVESTMENT IN SUBSIDIARIES (CONT’D)
(iii)
Acquisition of subsidiaries (cont’d)
2015
On 6 January 2015 (the “Acquisition Date”), the Company acquired the 100% equity interests of ISOTeam
Access Pte Ltd (previously known as Accom International Pte Ltd), ISOTeamC&P Pte Ltd (previously known
as Accom Pte Ltd), ISO-Landscape Pte Ltd (previously known as Rong Shun Landscape & Construction
Pte Ltd) and 94.08% equity interest of Industrial Contracts Marketing (2001) Pte Ltd (“ICM”).
The Group acquired the four new subsidiaries to expand its new niche markets such as landscaping,
specialist costings, private sector new-build painting and access provision equipment & services and to
expect the synergy value arising from the acquisition.
(a)
The fair value of the identifiable assets and liabilities of the subsidiaries acquired as at the acquisition
date were:
Fair value
recognised
on acquisition
$’000
Property, plant and equipment
5,406
Due from customers for contract work-in-progress
435
Intangible assets
2,317
Trade and other receivables
5,831
Inventories
29
Cash and bank balances
1,582
15,600
Due to customers for contract work-in-progress
(689)
Trade and other payables
(2,716)
Bank overdraft
(283)
Bank borrowings
(793)
Finance lease liabilities
(1,034)
Deferred tax liabilities
(754)
Tax payables
(91)
(6,360)
Total identifiable net assets at fair value
9,240
Non-controlling interests
(138)
Goodwill arising from acquisition
3,061
12,163
Consideration transferred for the acquisition
Cash paid
4,839
Equity instruments issued (13,537,464 ordinary shares of the Company)
(note 23(a))
7,324
Total consideration transferred
12,163
Effect of the acquisition of subsidiaries on cash flows
Total consideration for equity interest acquired
12,163
Less: non-cash consideration
(7,324)
Consideration settled in cash
4,839
Less: cash and bank balances of subsidiaries acquired
(1,582)
Net cash outflows on acquisition
3,257
92
ISOTEAM LTD.
ANNUAL REPORT 2016
