FORGING AHEAD - Tradewinds Plantation Berhad
FORGING AHEAD - Tradewinds Plantation Berhad
FORGING AHEAD - Tradewinds Plantation Berhad
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194<br />
FINANCIAL STATEMENTS<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
31 DECEMBER 2010<br />
34. ACQUISITION OF SUBSIDIARIES (continued)<br />
2009<br />
(a) On 21 August 2009, the Company entered into a conditional Sale and Purchase Agreement with Gerak Mashyur<br />
(Malaysia) Sdn. Bhd. (‘GMSB’) for the acquisition of 700,000 ordinary shares of RM1 each, representing 70%<br />
equity interest of Northern Intergrated Agriculture Sdn. Bhd. (‘NIA’) for a total cash consideration of RM50,360,000.<br />
The purchase consideration was adjusted to RM49,315,000 upon the completion of assessment of the acquiree’s<br />
identifiable assets, liabilities, and contingent liabilities based on due diligence report.<br />
NIA is a property development company incorporated in Malaysia and was established as a joint venture vehicle<br />
between GMSB and Perbadanan Kemajuan Negeri Kedah to undertake the development of the second border town<br />
between Malaysia and Thailand known as ‘Bandar Sempadan Kota Putra’.<br />
NIA owns five (5) parcels of leasehold agriculture land located at Kota Putra, Mukim Batang Tunggang Kiri, Daerah<br />
Padang Terap, Negeri Kedah measuring in aggregate approximately 2,612.99 acres (‘NIA Lands’) of which 169.44<br />
acres had been surrendered to the Government following completion of their project in November 2008.<br />
1,115.02 acres of the NIA Lands had been planted with rubber trees whilst an approved master plan for the<br />
development of Bandar Sempadan Kota Putra had been obtained for the remaining land.<br />
The acquisition of NIA was completed on 23 October 2009.<br />
The effect of the acquisition on the financial results of the Group for the previous financial year was as follows:<br />
TRADEWINDS PLANTATION BERHAD<br />
Annual Report 2010<br />
2009<br />
RM’000<br />
Revenue -<br />
Profit for the period 1,073<br />
If the acquisition had occurred on 1 January 2009, the Group’s revenue and profit for the previous financial year<br />
would have been RM679,985,000 and RM55,680,000 respectively.