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149

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)

A summary of the details of net assets acquired and cash fows arising from the acquisitions during the fnancial year are as follows:

Acquiree’s

carrying amount Fair value

RM’000 RM’000

Property, plant and equipment 19,569 19,569

Investment 140 140

Inventories 2,457 2,457

Receivables, deposits and prepayments 7,305 7,305

Deposit, cash and bank balance 18,303 18,303

Tax payable (170) (170)

Payables (6,812) (6,812)

Bank Overdraft (103) (103)

Deferred tax liabilities (4,203) (4,203)

Net assets acquired 36,486 36,486

Share of net assets acquired from minority interest 4,086

Fair value of net assets acquired 40,572

Goodwill on acquisition (Note 23) 20,726

Purchase consideration settled in cash 61,298

Less: Cash and cash equivalents of subsidiaries acquired (18,200)

Cash outfow of the Group on acquisition of subsidiaries 43,098

(c) Acquisition of companies in 2009

(i) On 5 August 2009, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”), a wholly-owned subsidiary, acquired an additional

28.3% equity interest in Seremban Specialist Hospital Sdn Bhd (“SSH”) comprising 7,086,466 ordinary shares of RM1.00 each for an aggregate cash consideration of RM14,150,000. This has effectively increased the Group’s interest in SSH from 72% to 100%. The fair value of net assets in Seremban Specialist Hospital Sdn Bhd at the date of acquisition was RM8,860,000 and the goodwill arising on this acquisition amounted to RM5,290,000.

(ii) On 27 August 2009, KPJSB, a wholly-owned subsidiary of the Company, acquired additional 16% equity interest in Lablink

(M) Sdn Bhd (“LMSB”) comprising 100,000 ordinary shares of RM1.00 each for an aggregate cash consideration of RM1,000,000. This has effectively increased the Group’s interest in LMSB from 84% to 100%. The fair value of net assets in Lablink (M) Sdn Bhd at the date of acquisition was RM1,493,000 and the negative goodwill arising on this acquisition amounted to RM493,000.

(iii) On 7 May 2009, KPJSB, a wholly-owned subsidiary of the Company, redeemed and converted 6,000,000 6% Redeemable

Convertible Unsecured Loan Stock (“RCULS”) of RM1.00 each in Kota Kinabalu Specialist Hospital Sdn Bhd (“KKSH”) of which 4,052,800 6% RCULS of RM1.00 each is converted to 4,052,800 ordinary shares of RM1.00 each and the balance of 1,947,200 6% RCULS of RM1.00 each is redeemed by way of cash.

As a result, the Group’s equity interest in KKSH has increased 2% to 97%. The fair value of net assets in KKSH at the

date of acquisition was RM145,000 and the goodwill arising on this acquisition amounted to RM57,000.

The acquisition stated in Note (c)(i), (c)(ii) and (c)(iii) above have no signifcant effect on the fnancial results of the Group

in the current fnancial year and the fnancial position of the Group as at the end of the current fnancial year.