Sasbadi Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 135 ANNUAL REPORT 2017 28. Significant events a) On 15 September 2016, Sasbadi Learning Solutions Sdn. Bhd., a wholly-owned subsidiary of the Company, entered into a share acquisition agreement to acquire 100% equity interest in Distinct Motion Sdn. Bhd. The acquisition was completed on 21 October 2016 (See Note 29.1). b) On 31 July 2017, the Company acquired the remaining 30% equity interest in Sanjung Unggul Sdn. Bhd. (See Note 29.2). 29. Acquisition of subsidiaries and non-controlling interests 29.1 Acquisition of subsidiaries On 21 October 2016, Sasbadi Learning Solutions Sdn. Bhd. completed the acquisition of 100% equity interest in Distinct Motion Sdn. Bhd. ("Distinct Motion"), comprising 740,000 ordinary shares, for a total cash consideration of RM850,000. Distinct Motion has a wholly-owned subsidiary, Distinct Element Sdn. Bhd. (Note: Distinct Motion and its subsidiary are herein collectively know n as “Distinct Motion Group”). From the date of acquisition of 21 October 2016 to 31 August 2017, Distinct Motion Group contributed revenue of RM218,000 and loss of RM320,000. If the acquisition had occurred on 1 September 2016, management estimates that Distinct Motion Group would have contributed revenue and loss of RM264,000 and RM349,000, respectively for the current financial year. On 12 August 2016, the Company completed the acquisition of 100% equity interest in United Publishing House (M) Sdn. Bhd. ("United Publishing"), comprising 200,000 ordinary shares, for a total cash consideration of RM4,350,000. United Publishing has four (4) wholly-owned subsidiaries, i.e. Penerbitan Daya Sdn. Bhd., UPH Distributor Sdn. Bhd., G-Apple Studio Sdn. Bhd. and Penerbitan Minda Sdn. Bhd. (Note: United Publishing and its subsidiaries are herein collectively known as "United Publishing Group"). From date of acquisition of 12 August 2016 to 31 August 2016, United Publishing Group contributed revenue of RM864,000 and profit of RM495,000. If the acquisition had occurred on 1 September 2015, management estimates that United Publishing Group would have contributed revenue and loss of RM10,042,000 and RM1,158,000, respectively for the previous financial year.