Press Metal Annual Report 2023

Financial Statements Financial Statements Press Metal Aluminium Holdings Berhad 304 305 Integrated Annual Report 2023 Notes to the Financial Statements Notes to the Financial Statements 32. BUSINESS COMBINATIONS (CONT’D) 2022 (cont’d) 32.1 Acquisition of subsidiary (cont’d) Note Group 2022 RM’000 Identifiable assets acquired and liabilities assumed Property, plant and equipment 3 6,487 Trade and other receivables 11 Current tax assets 1,574 Cash and cash equivalents 56 Loans and borrowings (6,708) Trade and other payables (607) Total identifiable net assets 813 Net cash outflow arising from acquisition of subsidiaries Purchase consideration settled in cash and cash equivalents (4,500) Cash and cash equivalents acquired 56 (4,444) Goodwill Goodwill was recognised as a result of the acquisition as follows: Total consideration transferred 4,500 Fair value of identifiable net assets (813) Goodwill 3,687 The goodwill is attributable mainly to the skills and technical talent of FBNE. None of the goodwill recognised was expected to be deductible for income tax purposes. Acquisition-related costs The Group incurred acquisition-related costs of RM24,000 related to external legal fees. The legal fees had been included in administrative expenses in the Group’s consolidated statement of profit or loss and other comprehensive income. 2023 32.2 Partial disposal of interest in a subsidiary In December 2023, the Group, via its wholly-owned subsidiary, Press Metal (HK) Limited disposed of 4.1% equity interest in a subsidiary, Press Metal International Limited (“PMI”) to third parties for a total cash consideration of RMB41,345,000 (equivalent to approximately RM27,019,000), decreasing its ownership in PMI and its direct subsidiaries (“collectively known as PMI subgroup”) from 92.4% to 88.3%. The carrying amount of PMI subgroup’s net assets in the Group’s financial statements on the date of disposal was RM796,634,000. The Group recognised an increase in non-controlling interests of RM32,662,000 and a decrease in retained earnings of RM5,643,000. 33. INTEREST IN JOINT OPERATION The Group has a 50% (2022: 50%) ownership interest in a joint operation, Japan Alumina Associates (Australia) Pty. Ltd. (“JAA”) with Sojitz Corporation. JAA’s principal place of business is in Australia. JAA markets the share of alumina produced through its participation in a bauxite mine and an alumina refinery and is strategic for the Group in ensuring its long-term access to raw material which reduces its exposure and reliance on third party suppliers. The Group and Sojitz Corporation have equal board representatives in JAA and all relevant decisions require unanimous votes from the shareholders. Based on the shareholders’ agreement, the Group and Sojitz Corporation are entitled to the outputs produced by JAA in proportion to their respective shareholdings in JAA. In view that the Group has rights to the assets, and obligations for the liabilities relating to JAA, therefore the investment in JAA is accounted for as a joint operation. 34. SIGNIFICANT EVENTS 34.1 Issuance of Islamic Medium-Term Notes In August 2019, the Company made a lodgement with the Securities Commission Malaysia for the establishment of Islamic Medium-Term Notes of RM5.0 billion in nominal value based on the Shariah Principle of Wakalah Bi AlIstithmar (“Sukuk Programme”), for a tenure of up to thirty (30) years. In September 2023, the Company made its fourth issuance of the Sukuk Programme for an aggregate nominal value of RM500 million with tenures of 5 years and 7 years. The Group utilised the proceeds from the issuance for general corporate purposes including capital expenditure, working capital requirements, investments and refinancing of existing borrowings. 34.2 Subscription of additional equity interest in PT Bintan Alumina Indonesia (“PT BAI”) In November 2019, the Company entered into a share subscription agreement (“SSA”) and a shareholders’ agreement (“SHA”) with several third parties, for the proposed subscription of 25% equity interest in PT BAI for a total cash consideration of USD80,232,000 (equivalent to approximately RM332,376,000). The transaction was completed in February 2020. PT BAI is principally involved in the production of non-ferrous metals and is currently constructing an alumina refinery plant together with the necessary facilities in Galang Batang, Indonesia. As at 31 December 2023, the investment in PT BAI had increased to RM1,229,397,000 following additional investments made by the Company during the financial year, which were in equal proportions with the remaining investors. 35. SUBSEQUENT EVENT 35.1 Acquisition of subsidiary Subsequent to the reporting period, in January 2024, Press Metal Berhad (“PMB”), a wholly-owned subsidiary of the Company, completed the acquisition of the entire equity interest in Everpress Aluminium Industries Sdn. Bhd. (“Everpress Group”) from a third party for a total cash consideration of RM5,000,000. The effects of the acquisition are not material to be disclosed.

RkJQdWJsaXNoZXIy NDgzMzc=