MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 229 Financial Statements 15. INVESTMENTS IN SUBSIDIARIES (CONT'D.) (a) Additional investments in subsidiaries (cont'd.) (ii) In the previous financial year (cont'd.) (c) Gain on acquisition of subsidiary (cont'd.) The effect of the acquisition on cash flows in previous year is as follows: RM'000 Purchase consideration satisfied in cash 54,111 Less: Cash and cash equivalents of subsidiary acquired (56,008) Net cash inflow on acquisition (1,897) Gain on acquisition of subsidiary RM'000 Purchase consideration satisfied in cash 54,111 Less: Fair value of net identifiable assets (101,564) Gain on acquisition of subsidiary (47,453) (d) The Group had on 21 April 2016 via AET Inc. Limited, a wholly-owned subsidiary of the Group, completed the acquisition of the remaining 50% equity interest in a joint venture, Paramount Tankers Corp., for a cash consideration of USD59,293,000 (RM238,565,000) from Golden Energy Tankers Holdings Corp.. Upon completion, Paramount Tankers Corp. became a wholly-owned subsidiary of the Group. The carrying amount and the fair values of the identifiable assets and liabilities of Paramount Tankers Corp. as at the date of acquisition were as follows: At carrying amount RM'000 At fair value RM'000 Ships 1,196,304 1,147,703 Current assets 92,194 92,194 Current liabilities (84,346) (84,346) Non-current liabilities (657,150) (657,150) Net identifiable assets and liabilities 547,002 498,401