FORGING AHEAD - Tradewinds Plantation Berhad

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