Eng - IOI Group

notestothefinancialstatements cont’d34 ACQUISITION OF SUBSIDIARIES cont’d2002During the previous financial year, the Group acquired the following subsidiaries:In RM’000Cash Inflow/(Outflow),Net of Cash and CashNote Equivalents Acquired Acquired Byi Palmco Holdings Berhad 34.5 31,075 IOI Corporation Berhadii Riang Takzim Sdn Bhd 34.6 (1,000) Cahaya Kota Development Sdn Bhdiii Lush Development Sdn Bhd 34.7 (37,713) Cahaya Kota Development Sdn Bhd(11,417) Riang Takzim Sdn Bhd(49,130)(19,055)34.5 Palmco Holdings BerhadAs at end of the financial year ended 30 June 2001, the Group held 32% equity interest in Palmco HoldingsBerhad (“Palmco”) and Palmco was accounted for as an associate of the Group.During the first 3 months of the previous financial year, the Group acquired an additional 27,641,231ordinary shares of RM1.00 each in Palmco (“Palmco Shares”) and the effective equity interest in Palmco asan associate of the Group increased from 32% to 40% as at 30 September 2001.Subsequent to that, the Group has further acquired 43,051,408 Palmco Shares representing 19% effectiveequity interest for a total cash consideration of RM188.3 million. Palmco was accounted for as a subsidiarywith effect from 4 October 2001 when the Mandatory General Offer became unconditional.Details of fair value of the net assets acquired and cash inflow on acquisition of subsidiary were as follows:In RM’000IOI Corporation BerhadAnnual Report 2003192Property, plant and equipment 463,710Investment in associates 135,921Other long term investments 7,357Net current assets 308,426Long term borrowings (40,000)Other long term liabilities (52,164)Minority interests (317,938)Less: Net assets previously accounted for as interest in associate (350,632)Net assets acquired 154,680Goodwill on consolidation 33,663Cost on acquisition 188,343Purchase consideration discharged by cash 188,343Less: cash and cash equivalents of subsidiary acquired (219,418)Cash inflow on acquisition of subsidiary (31,075)