Press Metal Aluminium Holdings Berhad SECTION 6 • FINANCIAL STATEMENTS 330 Notes to the Financial Statements 32. BUSINESS COMBINATIONS 2024 32.1 Acquisition of an indirect subsidiary PT Kalimantan Alumina Indonesia (“PTKAN”) In September 2024, the Group, via its wholly-owned subsidiary, Press Metal International Resources (HK) Limited (“PMIRHK”), entered into a share subscription agreement (“SSA”) and a shareholders’ agreement (“SHA”) with PT Alakasa Alumina Refineri (“AAR”) and PT Dinamika Sejahtera Mandiri (“DSM”), for the subscription of 80% equity interest in PTKAN, where DSM had surrendered 100% of its equity interest in PTKAN to PMIRHK and AAR in exchange for 2.75% or 687,500 “Series A” shares in the proposed new joint venture in PTKAN valued at USD687,500 (equivalent to approximately RM2,968,000). PMIRHK and AAR hold 80.00% and 17.25% equity interest in PTKAN respectively. The acquisition of PTKAN has further expanded the Group’s involvement in the upstream market. Based on the SSA and SHA, the Group had committed for capital injections of USD240,000,000 (equivalent to approximately RM1,036,000,000), to be executed in seven tranches over the next year. In October 2024, the Group, via its wholly-owned subsidiary, PMIRHK, completed the first tranche of subscription, where the Group injected USD20,000,000 (equivalent to approximately RM88,000,000) for 20,000,000 “Series B” shares in PTKAN. In December 2024, the second tranche of subscription was executed, where the Group further injected USD40,000,000 (equivalent to approximately RM176,000,000) for “Series C” shares in PTKAN, maintaining the Group’s 80% equity interest. The effects of the acquisition are not material to be disclosed. Everpress Aluminium Industries Sdn. Bhd. In January 2024, the Group, via its wholly-owned subsidiary, Press Metal Berhad completed the acquisition of entire equity interest in Everpress Aluminium Industries Sdn. Bhd. for a total cash consideration of RM5,000,000, effectively gaining ownership in its direct subsidiaries, Centpro International Trading Co., Ltd. and Changde Centpro Trading Co., Ltd.. The acquisition was aimed at improving the Group’s supply chain efficiency within the China market. The following summarises the major classes of consideration transferred, and the recognised amounts of assets and liabilities assumed at the acquisition date: Group 2024 RM’000 Fair value of consideration transferred Cash and cash equivalents 5,000
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