QL Resources Berhad (428915-X)
144
34. Acquisition of subsidiaries (Cont’d)
Acquisitions of subsidiaries in 2015 (Cont’d)
In 2015, the fair value adjustment of KSSB’s freehold land has been determined provisionally. The fair value exercise
and purchase price allocation in respect of the above acquisitions was completed in 2016. The effect of the fair
adjustment were as follows:
Provisional
fair value as Final fair
reported Fair value value
in FY2015 adjustments adjustments
RM’000 RM’000 RM’000
Property, plant and equipment 30,279 2,324 32,603
Cash and cash equivalents 14,564 - 14,564
Inventories 812 - 812
Biological assets 1,348 - 1,348
Investment in an associate 346 - 346
Trade and other receivables 6,726 - 6,726
Trade and other payables (8,326) - (8,326)
Loans and borrowings (9,484) - (9,484)
Non-controlling interests (11,717) (1,100) (12,817)
Deferred tax liabilities (764) (37) (801)
Provision for taxation (174) - (174)
Negative goodwill - (1,187) (1,187)
23,610 - 23,610
The fair value adjustments have not been retrospectively adjusted as the effects are not material in the context of the
Group’s financial statements.
Net cash outflow arising from acquisition of subsidiaries:
RM’000
Purchase consideration settled in cash and cash equivalents (23,610)
Cash and cash equivalents acquired 14,564
(9,046)
35. Subsequent event
In April 2016, the Group, via its wholly-owned subsidiary, Maxincome Resources Sdn. Bhd. (“Maxincome”) had entered
into an Area Franchise Agreement (“AFA”) with FamilyMart Co. Ltd. for the development and operation of FamilyMart
convenience stores in Malaysia.
The salient points of the AFA are as follows:
i) 20 years - Renewable for subsequent periods of 20 years each at the Maxincome’s option; and
ii) The agreement is conditional upon successful franchisee registration of Maxincome with Ministry of Domestic
Trade, Co-operatives and Consumerism.
The expansion into the convenience store chain business with the established FamilyMart brand will not only open up
bigger growth opportunities, but it is also a strategic downstream expansion of QL’s existing food manufacturing and
distribution businesses that creates synergistic effect for the group.
Notes to the Financial Statements
(Cont’d.)
