Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 135 38. Acquisition of subsidiaries and non-controlling interests (a) Acquisition of subsidiaries On 4 June 2020, the Group via SDIL, a wholly owned indirect subsidiary of the Company has entered into a Share Sale Agreement to acquire 1,360,001 ordinary shares representing 80% equity interest in Wellahead Holding Limited for a cash consideration of RM18.4 million and is recognised as a subsidiary. On 16 December 2020, the Group via SDGB, a wholly owned subsidiary of the Company entered into a Share Sale Agreement to acquire 20,000,000 ordinary shares representing 100% equity interest in Serba Dinamik Education Sdn. Bhd. (formerly known as Prestariang Education Sdn. Bhd.) for a consideration of RM2.5 million and is recognised as a subsidiary. Recognised fair value at date of acquisition Serba Dinamik Education Sdn. Bhd. Wellahead Holdings Limited Total RM’000 RM’000 RM’000 Property, plant and equipment 264 4,350 4,614 Right-of-use assets - 217 217 Inventories - 133 133 Trade and other receivables 5,457 3,462 8,919 Deposits and prepayments 1,671 265 1,936 Cash and cash equivalents 611 5,942 6,553 Deferred tax liabilities - (380) (380) Current tax payables - (1) (1) Trade and other payables (22,378) (1,594) (23,972) Contract liabilities (1,119) - (1,119) Lease liabilities - (846) (846) Net identifiable assets and liabilities (15,494) 11,548 (3,946) Goodwill 17,995 6,891 24,886 Purchase consideration 2,501 18,439 20,940 Less: Cash and cash equivalents acquired (611) (5,942) (6,553) Net cash outflow on acquisition of subsidiaries 1,890 12,497 14,387