Eng - IOI Group

notestothefinancialstatements cont’d34 ACQUISITION OF SUBSIDIARIES cont’d34.1 Loders Croklaan cont’dThe effect of the above acquisition on the financial position of the Group as at 30 June 2003 is as follows:In RM’0002003Property, plant and equipment 427,337Other long term assets 12,417Net current assets 339,936Other long term liabilities (110,144)Goodwill on consolidation 234,025Increase in Group’s net assets 903,571The carrying amounts of certain property, plant and equipment of Loders Croklaan are still subject to fairvalue adjustments based on valuation to be carried out by independent valuer which will only be available inthe financial year ending 30 June 2004. Accordingly, goodwill may be adjusted in the financial year ending30 June 2004 in accordance with the provisions of MASB 21, Business Combinations.34.2 Unipamol Malaysia Sdn Bhd and Pamol Plantations Sdn BhdOn 17 January 2003, a subsidiary of the Company, Palmco Holdings Berhad acquired the entire issued andpaid-up share capital of Unipamol Malaysia Sdn Bhd and 49.99% of the issued and paid-up share capital ofPamol Plantations Sdn Bhd from the wholly-owned subsidiaries of Unilever plc.Details of fair value of the net assets acquired and cash outflow on acquisition of subsidiaries are as follows:In RM’000Property, plant and equipment 643,034Other long term assets 635Net current assets 37,949Other long term liabilities (47,939)Minority interests (85,798)Net assets acquired 547,881Goodwill on consolidation 31,989579,870IOI Corporation BerhadAnnual Report 2003188Purchase consideration 579,870Less: cash and cash equivalents of subsidiaries acquired (26,284)Less: Other payables (22,903)Cash outflow on acquisition of subsidiaries 530,683