Eng - IOI Group

34 ACQUISITION OF SUBSIDIARIES cont’d34.7 Lush Development Sdn BhdThe acquisitions of Lush Development Sdn Bhd by Cahaya Kota Development Sdn Bhd and Riang Takzim SdnBhd were completed on 3 October 2001. The equity interests acquired were as follows:Acquired ByNo. ofOrdinaryCashShares of Equity Consi-RM1.00 Interest derationeach Acquired RM’000Cahaya Kota Development Sdn Bhd 5,100 51% 12,138Riang Takzim Sdn Bhd 4,900 49% 11,66210,000 100% 23,800Details of fair value of the net assets acquired and cash outflow on acquisition of subsidiary were as follows:In RM’000Land held for development 74,056Net current liabilities (12,300)Deferred taxation (9,256)Net assets acquired 52,500Purchase consideration discharged by cash 52,500Less: deposits paid during the previous financial year (3,370)Cash outflow on acquisition of subsidiary 49,130The effect of the above acquisition on the financial results of the Group during the previous financial yearwas insignificant as the company has yet to commence business.The effect of the above acquisition on the financial position of the Group as at 30 June 2002 was as follows:In RM’000Land held for development 79,246Net current liabilities (12,306)Deferred taxation (9,256)Increase in Group’s net assets 57,684195IOI Corporation BerhadAnnual Report 2003