NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 36 DIVIDENDS There were no dividends paid or declared in respect of the financial year ended 31 December 2022 and 31 December 2021. 37 ACQUISITION OF SUBSIDIARIES Acquisitions of subsidiaries during the financial year On 29 April 2022, Wasco Engineering Group Limited (“WEGL”), an indirect wholly-owned subsidiary of the Company entered into a Share Sale Agreement (“SSA”) with MMA Offshore Asia Pte. Ltd., for the acquisition of 100% equity interests in MMA Offshore Holdings Pte. Ltd. (“MMA Offshore Holdings”) and MMA Offshore Investments Pte. Ltd. (“MMA Offshore Investments”) for a total consideration of USD15,000,000 (equivalent to approximately RM65,397,000) plus the Working Capital Amount (“Purchase price”), subject to the terms and conditions as stipulated in the SSA (“Sale Shares”). Pursuant to the SSA, upon completion of the Sale Shares, PT Jaya Asiatic Shipyard (“PT Jaya”), a subsidiary of MMA Offshore Holdings and MMA Offshore Investments shall become an indirect wholly-owned subsidiary of the Company through WEGL. On 1 December 2022, the acquisition is deemed achieved with the final instalment of the Purchase Price being paid in accordance to the terms of the SSA. Details of the acquisition and the net cash flow on acquisition are as follows: At the date of acquisition RM’000 Right-of-use assets 67,531 Inventories 2 Trade and other receivables 126 Cash and bank balances 6,099 73,758 Trade and other payables 111 Current tax liabilities 603 Deferred tax liabilities 281 995 Total identifiable net assets acquired 72,763 Less: Transaction costs (1,276) Net assets acquired 71,487 Total consideration paid 71,487 Less: Cash and cash equivalents of subsidiary acquired (6,099) Net cash outflow of the Group on acquisition 65,388 Wah Seong Corporation Berhad Annual Report 2022 186
RkJQdWJsaXNoZXIy NDgzMzc=