UOB Annual Report 2002 - United Overseas Bank
UOB Annual Report 2002 - United Overseas Bank
UOB Annual Report 2002 - United Overseas Bank
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Notes to the Financial Statements<br />
for the financial year ended 31 December <strong>2002</strong><br />
32 Investments in Subsidiaries (continued)<br />
(c) On 3 June <strong>2002</strong>, ICB, a wholly-owned subsidiary, was delisted from the Singapore Exchange after the <strong>Bank</strong> acquired the<br />
minority shareholders’ interests of 12.55% in ICB.<br />
On 28 August <strong>2002</strong>, ICB was merged into the <strong>Bank</strong> under Section 14A of the <strong>Bank</strong>ing Act, Cap.19. As a result of the merger, the<br />
businesses, assets, liabilities, interests, rights, privileges, obligations and commitments of ICB were transferred to and vested<br />
in the <strong>Bank</strong>.<br />
The net assets of ICB were partly transferred to the <strong>Bank</strong> by way of a pre-merger dividend which was dealt with as follows:<br />
Gross pre-merger dividend of $881,855,000 net of tax at 22% amounting to $194,008,000 687,847<br />
Less: Dividend of $206,960,000 net of tax at 22% amounting to $45,531,000,<br />
paid out of ICB’s pre-acquisition profits, credited to the <strong>Bank</strong>’s cost of investment in ICB 161,429<br />
Gross dividend of $674,895,000 net of tax at 22% amounting to $148,477,000,<br />
paid out of ICB’s post-acquisition profits, credited to income statement (Notes 13 and 14) 526,418<br />
$’000<br />
The deficit arising from the merger of ICB of $57,422,000 represents the shortfall of the carrying amount of the net assets of ICB<br />
as at 28 August <strong>2002</strong> below the carrying amount of the <strong>Bank</strong>’s investment in ICB. The deficit has been charged to the <strong>Bank</strong>’s<br />
income statement (Note 13) with no financial effect on the consolidated income statement.<br />
The assets, liabilities and off-balance sheet items of ICB as at 28 August <strong>2002</strong> transferred to the <strong>Bank</strong> were $3,329 million,<br />
$3,050 million and $1,651 million respectively.<br />
(d) During the financial year, the Group increased its interest in a subsidiary, <strong>United</strong> <strong>Overseas</strong> <strong>Bank</strong> Philippines, from 60% to 100%.<br />
Approval has been given by the authorities in the Philippines for the acquisition subject to the fulfilment of certain conditions.<br />
(e)<br />
During the financial year, the Group acquired the following subsidiaries:<br />
Interest Acquired Consideration Paid<br />
% $’000<br />
OUB Optimix Funds Management Limited 50 2,243<br />
<strong>UOB</strong> Investment Consultancy (Beijing) Limited<br />
[formerly known as <strong>UOB</strong> Centek Technology<br />
(Beijing) Investment Consulting Co., Ltd] 50 196<br />
The acquisitions had no material effect on the Group’s balance sheet and results for the current financial year.<br />
(f)<br />
During the financial year, certain subsidiaries of the Group were disposed of, liquidated or placed into members’ voluntary<br />
liquidation.<br />
The disposal and liquidations had no material effect on the Group’s and the <strong>Bank</strong>’s balance sheets and results for the current<br />
financial year.<br />
132