Annual Report 2016
143
34. Acquisition of subsidiaries
Acquisition of subsidiary in 2016
The Group, via its subsidiary, Kembang Subur Sdn. Bhd., acquired 100% equity interest in KS Pekan Hatchery Sdn.
Bhd. (“KSPH”) (formerly known as Cargill Aquaculture Resources Sdn. Bhd.) for a cash consideration of RM1,300,000.
KSPH is principally engaged in the breeding, genetic selection and hatchery operation for the production of aquatic
species. The acquisition had the following effect on the Group’s assets and liabilities on acquisition date:
Recognised values
on acquisition
RM’000
Cash and cash equivalents 224
Inventories 22
Trade and other receivables 158
404
Goodwill on acquisition 896
Total purchase consideration 1,300
Net cash outflow arising from acquisition of subsidiary:
RM’000
Purchase consideration settled in cash and cash equivalents (1,300)
Cash and cash equivalents acquired 224
(1,076)
Acquisitions of subsidiaries in 2015
In the previous financial year, the Group acquired the following subsidiaries:
- 100% equity interest in Kuala Kedah Fish Meal Sendirian Berhad (“KKFM”) for a cash consideration of
RM2,700,000; and
- 63.33% equity interest in Kembang Subur Sdn. Bhd. (“KSSB”) and its subsidiaries, namely KS Galah Sdn. Bhd.,
KS Monodon Sdn. Bhd., Kembang Subur (Perak) Sdn. Bhd. and KS International Ltd., for a cash consideration of
RM20,910,000.
KKFM is principally engaged in property investment. KSSB principal activities involve the business of marine shrimp
hatchery operation for the production and sale of SPF nauplii and post larvae, as well as shrimp grow-out farming,
whilst the principal activities of its subsidiaries are as disclosed in Note 33 of the financial statements.
Notes to the Financial Statements
(Cont’d.)
