UOB Annual Report 2002 - United Overseas Bank

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