93
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
12. INVESTMENTS IN SUBSIDIARIES (CONT’D)
(i)
On 28 August 2014, Frontken MIC Co. Limited (“FMIC”), a subsidiary of the Company, increased its
issued and paid-up capital from HKD14,990,812 to HKD18,173,025 by the allotment and issuance of
3,182,213 new ordinary shares of HKD1 each at par for cash.
Pursuant to the above allotment of 3,182,213 new ordinary shares, the Company’s effective equity
interest in FMIC, held directly and indirectly by the Company diluted from 41.61% to 40.43%.
(ii)
On 30 April 2014, the Company entered into a Sale and Purchase Agreement to acquire 900,000 ordinary
shares of RM1.00 each (“TTES Shares”) representing 45% of the issued and paid-up share capital of
TTES Frontken Integrated Services Sdn. Bhd. (formerly known as TTES Team & Specialist Sdn. Bhd.)
(“TTES”) for a total cash consideration of approximately RM11 million or approximately RM12.22 per
TTES Share.
The details of the assets, liabilities and cash flows arising from the acquisition of TTES were as follows:
The Group
2014
RM
Property, plant and equipment
2,078,771
Trade and other receivables
1,454,495
Cash and cash equivalents
3,635,707
Trade and other payables
(295,764)
Hire purchase payables
(410,581)
Tax liabilities
(537,267)
Fair value of net identifiable assets
5,925,361
Less : Non-controlling interests
(3,258,949)
Add: Goodwill on acquisition (Note 14)
8,366,591
Total cost of acquisition
11,033,003
Less: Cash and cash equivalents in subsidiary acquired
(3,635,707)
Net cash outflow on acquisition
7,397,296
The acquired subsidiary has contributed the following results to the Group:-
2014
RM
Revenue
19,791,906
Profit after tax
2,435,650
If the acquisition had taken place at the beginning of the financial year, the Group’s revenue and profit
after tax would have been RM320,679,057 and RM25,188,173 respectively.
