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SEE HUP SENG LIMITED
Annual Report 2012
68
Notes to the Financial Statements
31 DECEMBER 2012
9 Subsidiary Companies (Continued)
Investment in Subsidiaries (Continued)
(b) Acquisition of Subsidiary Companies (Continued)
(ii) On 7 November 2012, the Company entered into a sales and purchase agreement with Lee Ah
Nak and Tan Tooh Meng @ Tan Toh Meng to acquires the entire interest in Axxmo International
Pte Ltd (“Axxmo”) for a consideration of S$1,309,000. The Group acquired Axxmo to strengthen
its refined petroleum business.
The acquired company derived revenue of S$463,000 and profit before tax of S$21,000 from
the date of acquisition to 31 December 2012 to the Group. the subsidiary company’s assets and
liabilities at 31 December 2012 were S$2,248,000 and S$900,000 respectively. If the acquisition
had occurred on 1 January 2012, Group’s revenue would have been S$262,035,000 and profit
before tax would have been S$6,840,000.
(c) The fair value of the assets and liabilities relating to the subsidiaries and the impact of the acquisition on
the cash flows of the Group are as follows:
2012 2011
S$’000 S$’000
Property, plant and equipment 2,731 –
Cash and bank balances 902 –
Other assets 1,571 –
Other payables (1,276) –
Fair value of net assets 3,928 –
Share of fair value of net assets acquired 2,636 –
Goodwill on acquisition of subsidiary companies (Note 13) 2,753 –
Consideration for the acquisition of subsidiary companies 5,389 –
Cash and cash equivalent acquired (902) –
Net cash outflow on acquisition of subsidiary companies 4,487 –
Net cash paid 3,833 –
Amount payable in accordance with sales and
purchase agreement (Note 22) 654 –
4,487 –