Yinson Annual Report 2019

209 Yinson Group Overview Strategy and Sustainability Governance Accountability Annual General Meeting 46. SUMMARY OF EFFECTS OF ACQUISITION AND RE-ORGANISATION OF COMPANIES (CONTINUED) 2018 (continued) Details of the consideration paid, assets acquired and liabilities assumed, the non-controlling interests recognised and the effects on the cash flows of the Group, at the acquisition date, are as follows: Carrying value Fair value RM’000 RM’000 Property, plant and equipment 222,217 222,217 Intangible assets 62 62 Inventories 767 767 Trade and other receivables 8,002 8,002 Tax recoverable 98 98 Cash and bank balances 1,054 1,054 Trade and other payables (22,002) (22,002) Loans and borrowings (59) (59) Convertible note instruments (96,966) (96,966) Deferred tax liabilities (16) (16) Non-controlling interests (701) (701) Share of net assets acquired 112,456 112,456 Bargain purchase (21) Derecognition of associate and joint venture (77,190) Purchase consideration 35,245 Cash and bank balances arising from the acquisitions of subsidiaries (1,054) Net cash outflow from acquisitions 34,191 47. SUMMARY OF EFFECTS OF DILUTION AND DISPOSAL OF COMPANIES (a) On 6 June 2018, Yinson Trillium Limited (“YTL”), a wholly owned subsidiary of the Company, completed the disposal of 26% equity interest in Yinson Production (West Africa) Pte. Ltd. (“YPWAPL”) to Japan Sankofa Offshore Production Pte. Ltd. for a maximum cash consideration of USD117 million, subject to price adjustment. As a result, the Group’s effective equity interest in YPWAPL has reduced from 100% to 74%. (b) On 31 December 2018, Yinson Dynamic Ltd, an indirect wholly owned subsidiary of the Group, completed the disposal of its entire 49% equity interest in each of OY Genesis Ltd (“OYGL”), OY Jasper Ltd (“OYJL”) and OY Topaz Ltd (“OYTL”) for a total cash consideration of USD3. As a result, OYGL, OYJL and OYTL ceased to be associates of the Group. Below are the effects of the disposal for item (a) on the financial position and the cash flows of the Group: RM’000 Property, plant and equipment 926,190 Trade and other receivables 47,186 Cash and bank balances 118,826 Trade and other payables (116,342) Loans and borrowings (680,766) Derivative liabilities (4,589) Tax payables (22) Share of net assets disposed 290,483 Gain on disposal (recognised to equity) 175,861 Sales consideration (net of transaction cost) 466,344 Add: Direct expenses attributable to the disposal 2,681 Less: Sales consideration yet to receive (53,239) Net cash inflow from disposal 415,786