notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
43 SIGNIFICANT ACQUISITIONS (CONTINUED)
(b)
Acquisitions in the preceding financial year (continued)
(ii)
On 31 January 2013, the Group subscribed an additional 16,000 shares in Atama Resources Inc. (“ARI”) for a cash consideration of USD9,300,000
(equivalent to RM28,672,000). With the completion of this subscription, the Group’s effective equity interest in ARI increased to 51%. Accordingly, ARI
and its subsidiaries (collectively known as “ARI Group”), namely Atama Plantation SARL, Signet Plus Sdn. Bhd., Agro Commodities Inc. and Atama Forest
SARL became subsidiaries of the Group, effective 31 January 2013.
The investment in ARI Group is treated as an acquisition of assets as it does not constitute a business. Hence, this acquisition is not within the scope
of MFRS 3 “Business Combinations”.
ARI Group is involved in the business of agricultural development, cultivation of oil palm and other crops and provision of management services to its
related companies. The acquisition has expanded the Group into the plantation industry.
44 DISPOSAL OF SUBSIDIARIES
(a)
Disposal of subsidiaries during the financial year
On 19 June 2014, the Company entered into a Share Sale Agreement with its wholly-owned subsidiary, Jutasama Sdn. Bhd., for the disposal of its 100% equity
interest in PMT Industries Sdn. Bhd., and its subsidiaries (collectively known as PMT Group) for a total consideration of RM125,000,000. As a result, PMT Group,
become indirect subsidiaries of the Company.
The consideration was paid by the combination of cash of RM75,000,000 and capitalisation of Redeemable Preference Shares of RM50,000,000.
(b)
Disposal of interest in a subsidiary in the preceding financial year
On 13 September 2013, Wasco Energy Ltd, a wholly-owned subsidiary of the Company, completed a disposal of 40% of its equity interest in Wasco (Australia)
Pty. Ltd., an indirect subsidiary of the Company, for a total consideration of AUD2,800 (equivalent to RM8,468) effectively reducing the indirect interest of the
Group to 60%. The effects of this transaction are disclosed in the consolidated statement of changes in equity.
150
Wah Seong Corporation Berhad • Annual Report 2014
