GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 126 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 16. INVESTMENTS IN SUBSIDIARIES (cont’d) (g) Acquisition of subsidiary during the financial year ended 31 December 2019 (cont’d) (i) Speed Pay Plc. (cont’d) The fair values of the identifiable assets and liabilities acquired and the effects on cash flows arising from the acquisitions were as follows: 2019 At date of acquisition Note RM Property, plant and equipment 12 2,462,428 Trade and other receivables 209,273 Cash and bank balances 3,071,001 5,742,702 Trade and other payables (712,954) Total identifiable net assets 5,029,748 Non-controlling interests (8,017,380) Goodwill arising from acquisition 15 11,332,252 Purchase consideration 8,344,620 Cash and cash equivalents of the subsidiaries acquired (3,071,001) Net cash outflow of the Group on acquisition 5,273,619 If the acquisition occurred on 1 January 2019, revenue and profit after tax of the Group for the financial year ended 31 December 2019 would been RM347,707,438 and RM26,716,346 respectively. (h) Acquisition of subsidiary during the financial year ended 31 December 2018 (i) Paysys (M) Sdn. Bhd. On 5 May 2018, the Company announced to Bursa Malaysia Securities Berhad (“Bursa Securities”) that S Capital Sdn. Bhd., a wholly-owned subsidiary of the Company had on same date, entered into a conditional Share Sale Agreement (“SSA”) with Paysys Group Holdings Sdn. Bhd. (“PGHSB”) and Rica Holdings (M) Sdn. Bhd. (“RHMSB”) (collectively referred to as the “Sellers”), to acquire 100% of the equity interest held by the Sellers in Paysys (M) Sdn. Bhd. (“PMSB”) (“Sale Shares”) for a total purchase consideration of up to RM80,000,000 (“Purchase Consideration”). On 15 May 2018, the Company announced that Bursa Securities had granted its approval on the listing of up to 33,537,353 new ordinary shares in GHL to be issued pursuant to the Proposed Acquisition. On 26 June 2018, the Company announced that in accordance with the terms and conditions of the SSA, the Company had paid the Cash Consideration of RM40,000,000 to the Sellers and issued the 13,414,941 Tranche 1 GHL Consideration Shares to be placed in escrow accounts managed by the Escrow Agent. Accordingly, the Proposed Acquisition is completed and PMSB became an indirect wholly-owned subsidiary of the Company.