279 INTEGRATED ANNUAL REPORT 2025 ACCOUNTABILITY | NOTES TO THE FINANCIAL STATEMENTS 47. SUMMARY OF EFFECTS OF ACQUISITION OF COMPANIES (CONTINUED) 2025 (continued) Group (continued) The financial effects at the date of acquisition on 8 May 2024 were as follows: 2025 RM million Fair Value Intangible assets (Note 19) 4 Inventories 3 Trade and other receivables 3 Cash and bank balances 1 Trade and other creditors (22) Contract liabilities (8) Net identifiable liabilities acquired (19) Consideration transferred - Fair value of previously held interest (19) Non-controlling interests 9 Carrying amount of the previously held equity interest (106) Loss on re-measurement of existing equity interest held as a joint venture (116) Net cash inflow from acquisition: Cash and bank balances acquired 1 During the financial year, SCSL encountered challenges in the commercial rollout of its new generation battery systems, which impacted its ability to meet evolving market demands and secure new contracts. The fair value of the identifiable assets and liabilities has reflected the challenging business conditions, resulting in a loss on re-measurement of existing equity interest held as a joint venture of RM116 million. From the date of acquisition, SCSL contributed RM7 million to the Group’s revenue and RM29 million to loss after tax. If the acquisition had occurred on 1 February 2024, the Group’s revenue and loss after tax would have been RM12 million and RM38 million, respectively. (a) On 5 December 2024, YVCPL acquired the remaining 39.2% stake, representing 15,538,896 ordinary shares, in SCSL for a cash consideration of USD2.00. Following the acquisition, SCSL became an indirect wholly-owned subsidiary of the Company. This acquisition resulted in the derecognition of non-controlling interest amounting to RM17 million, with a corresponding decrease in retained earnings by RM17 million. 2025 RM million Carrying amount of non-controlling interests acquired (17) Consideration paid to non-controlling interests - Excess of carrying amount of non-controlling interests over consideration paid recognised in retained earnings (17) (b) On 6 September 2024, YR Peru S.A.C, an indirect wholly-owned subsidiary of the Company signed the “Second Amendment to the SPA” to acquire the remaining shares from Verano Energy SpA (“Verano”) as the fulfilment of Milestone Payment 3 at the purchase consideration of approximately USD1 million (approximately RM4.6 million). As a result, the equity interest in Majes Sol. De Verano S.A.C (“Majes”) has increased from 51% to 100%, collectively owned by YR Peru S.A.C of 49% and YR Peru Limited of 51%. The Group has concluded that it had obtained control in Majes. Accordingly, the Group’s investment in Majes was reclassified from joint venture to wholly-owned subsidiary. This transaction has been accounted for as an asset acquisition rather than a business combination. Refer to Note 17(b) for the details on this asset acquisition.
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