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147

notes to the

financial statements

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2010 (cont’d)

20 INTEREST IN SUBSIDIARIES (continued)

(b) Acquisition of companies in 2010 (continued)

(i) On 20 May 2010, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”) entered into a conditional Share and Purchase

Agreement (“SPA”) with Penang Development Corporation for the acquisition of 4,050,000 ordinary shares of RM1.00 each which is the remaining of 30% of equity interest in Bukit Mertajam Specialist Hospital Sdn Bhd (“BMSHSB”) for a cash consideration of RM4,698,000. As a result of the acquisition, BMSHSB become a wholly-owned subsidiary of KPJSB. The fair value of net assets in Bukit Mertajam Specialist Hospital Sdn Bhd at the date of acquisition was RM4,085,659 and goodwill arising from the acquisition amounted to RM612,341.

(ii) On 6 January 2010, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”) entered into a conditional Share Sale Agreement

(“SSA”) with Sabah Medical Centre Sdn Bhd for the acquisition of 40.8 million ordinary shares of RM1.00 each which is equivalent to 51% of equity interest in SMC Healthcare Sdn Bhd (“SMCH”) for a cash consideration of RM51.0 million. KPJSB had also entered into a Management Agreement with SMCH for the appointment of KPJSB to manage the existing and the new private hospitals of SMCH. The acquisition was completed on 25 June 2010. The fair value of net assets in SMCH at the date of acquisition was RM34,465,000 and goodwill arising from the acquisition amounted to RM16,535,000.

(iii) On 2 June 2010, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”) subscribed to a rights issue for a further 3,250,000 in

Sterile Services Sdn Bhd for a cash consideration of RM3,250,000.

(iv) On 15 November 2010, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”) subscribed to a rights issue for a further

14,000,000 ordinary shares of RM1.00 in Puteri Nursing College (“KPJIC”) for a cash consideration of RM14,000,000.

(v) On 17 December 2010, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”) entered into a conditional Sale and Purchase

Agreement (“SPA”) for the acquisition of 80,000 ordinary shares of RM1.00 each which is equivalent to 80% of equity interest in Sri Kota Refractive & Eye Centre Sdn Bhd (“Eye Centre”) for a cash consideration of RM5,600,000. The fair value of net assets in Eye Centre at the date of acquisition was RM2,020,853 and goodwill arising from the acquisition amounted to RM3,579,143.

(vi) On 15 March 2010, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”) subscribed to a rights issue for a further 89,998

ordinary shares of RM1.00 in Healthcare IT Solutions Sdn Bhd for a cash consideration of RM89,998.

(vii) On 15 March 2010, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”) subscribed to a rights issue for a further 89,998

ordinary shares of RM1.00 in Skop Yakin (M) Sdn Bhd for a cash consideration of RM89,998.

The effect of the acquisitions on the fnancial results of the Group in the current fnancial year is as follows:

2010

RM’000

Revenue 14,988

Operating costs (12,690)

Proft before tax 2,298

Tax expense (582)

1,716

Minority interest 0

Proft for the fnancial year 1,716

Had the acquisitions took effect at the beginning of the fnancial year, the revenue and proft of the Group would have been

RM65,460,369 and RM9,146,900 respectively. These amounts have been calculated using the Group’s accounting policies and by adjusting the results of the subsidiaries to refect the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment had applied from 1 January 2010, together with the consequential tax effect.