92
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
28 ACQUISITIONOF 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
acquisition in 1 July 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.
Identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and
liabilities assumed at the acquisition date.
28 ACQUISITIONOF SUBSIDIARIES (CONT’D)
(ii) “Liha” Shipservice B.V. and Store Rijnmond B.V. (cont’d)
Group
2015
$
Cash and cash equivalents
2,591
Inventories
241,080
Trade and other receivables
134,338
Plant and equipment
286,840
Trade and other payables
(150,545)
Identifiable net assets acquired
514,304
An analysis of the cash flows in respect of the acquisition is as follows:
Group
2015
$
Cash paid
514,304
Cash and cash equivalents acquired
(2,591)
Net outflow of cash and cash equivalents on acquisition
511,713
