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TEHO INTERNATIONAL INC LTD.
Annual Report 2015
27 ACQUISITION OF SUBSIDIARIES (CONT’D)
(i) ECG Property Services Pte. Ltd. (cont’d)
Goodwill
The goodwill arising on acquisition is as follows:
Group
2015
$
Consideration transferred
13,570,000
Fair value of identifiable net assets acquired
(1,094,247)
Goodwill arising on acquisition (Note 5)
12,475,753
The goodwill arising on the acquisition of ECG Property Services is attributable to the
synergies expected to be achieved from the Group’s property development projects.
The goodwill is not deductible for tax purpose.
An analysis of the cash flows in respect of the acquisition is as follows:
Group
2015
$
Cash paid
3,000,000
Cash and cash equivalent acquired
(587,727)
Net outflow of cash and cash equivalents on acquisition
2,412,273
27 ACQUISITION OF SUBSIDIARIES (CONT’D)
(ii) “Liha” Shipservice B.V. and Store Rijnmond B.V.
On 31 December 2014, the Group acquired the entire share capital of “Liha”
Shipservice B.V. and Store Rijnmond B.V. (collectively the “Target Companies”) for
a cash consideration of EUR 320,000. As a result, the Target Companies became
wholly owned subsidiaries of the Group (see Note 6 for the principal activities).
Acquiring the Target Companies will complement the core business of the Group
in Rotterdam, Netherlands as the Target Companies are principally engaged in the
supply of rigging and mooring products.
The contributions from Target Companies for the period between the date of
acquisition and end of the financial year and if the acquisition had occurred on 1 July
2014, respectively, are as follows:
From date of From 1 July
acquisition in
2014 to
2015
30 June 2015
$
$
Revenue
273,637
695,385
Loss, net of tax
(2,717)
(2,907)
Acquisition-related costs
The Group incurred acquisition-related costs of $43,604 on legal fees and due
diligence costs. The costs have been included in administrative expenses.
NOTES TO THE
FINANCIAL STATEMENTS
Year ended 30 June 2015
