7 FINANCIAL STATEMENTS 385 47. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES (CONTD.) (g) The fair value of identifiable assets and liabilities of OCM at the date of step-up acquisition in the previous financial year was as follows: Fair value recognised on acquisition RM’000 Plant and equipment 828 Trade and other receivables 35,984 Contract assets 23,106 Tax recoverable 420 Cash and bank balances 2,331 Trade and other payables (48,806) Net asset acquired 13,863 Purchase consideration 176 Add: Fair value of existing 30% equity stake in OCM 4,159 Less: Identifiable net assets acquired at fair value (13,863) Negative goodwill on acquisition (9,528) As a result of the business combination, the Company conducted a purchase price allocation and determined that the value of the contract listing resulting from the acquisition was negligible. Therefore, it was not recognised. The effect of the acquisition on cash flows was as follows: RM’000 Purchase consideration satisfied by cash (176) Cash and cash equivalent of the subsidiary acquired 2,331 Net cash inflow on acquisition of the subsidiary at acquisition date 2,155 (h) In the previous financial year, EII, an indirect wholly-owned subsidiary of the Company, entered into a Sale and Purchase Agreement and Shareholders Agreement with NW Kaizen Holding Ltd for the proposed investment in KOA and KAMS through a 60% equity interest buy-in by EII. The cash and deferred consideration, amounting to AED67.0 million (equivalent to approximately RM86.3 million), is related to the acquisition of 180 ordinary shares in each Company.
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