Straco Corporation Limited • Annual Report 2014
90
NOTES TO THE FINANCIAL STATEMENTS
27
Acquisition of business
On 28 November 2014, the Group acquired the business of Singapore Flyer via its subsidiary, Straco Leisure Pte Ltd for a consideration of
$140,000,000. The Group has an effective shareholding interest of 90% in Straco Leisure Pte Ltd via its wholly-owned subsidiary, Bay Attractions Pte
Ltd, and WTS Leisure Pte Ltd has a direct shareholding interest of the remaining 10%.
The acquisition represents an expansion of the Group’s core tourism related business.
In the one month of 31 December 2014, Straco Leisure Pte Ltd contributed revenue of $3,702,269 and loss of $597,964 to the Group’s results. The
Group was unable to obtain from the receiver of Singapore Flyer Pte Ltd the information required to disclose the amounts of revenue and profit or loss
of the business acquired that would have been included in the consolidated statement of comprehensive income for the current reporting period had
the acquisition date been as of the beginning of the year.
The Group incurred acquisition-related costs of $2,186,133 on stamp duty, legal and professional fees. These costs have been included in
administrative expenses.
Identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the acquisition date.
Note
$
Property, plant and equipment
4
95,000,000
Investment property
5
50,000,000
Intangible assets
8
3,262,101
Inventories
1,031,781
Cash and cash equivalents
2,362,586
Trade and other payables
(2,362,586)
Deferred tax liabilities
9
(9,180,336)
Total identifiable net assets
140,113,546
Reconciliation of cash outflow in the consolidated statement of cash flows
Total identifiable net assets
140,113,546
Less: negative goodwill
(113,546)
Total consideration paid
140,000,000
Less: deposit utilised
(21,200,000)
Less: cash and cash equivalents
(2,362,586)
Acquisition through business combination, net of cash acquired
116,437,414
