IHH Healthcare Berhad
l
Annual Report 2014
208
Notes to the Financial Statements
42. Acquisitions and disposals
The external legal fees and due diligence costs related to acquisition activities are included in other operating expenses in the Group’s
consolidated statements of profit or loss and other comprehensive income and are disclosed in Note 29.
Changes in ownership interests in subsidiaries in 2014
(a)
On 17 March 2014, Swiss Zone Sdn. Bhd. (“Swiss Zone”), an indirect wholly-owned subsidiary of the Company, was dissolved pursuant to
members’ voluntary winding up. The dissolution of Swiss Zone is part of the Group’s streamlining exercise.
The transaction resulted in a increase in foreign currency translation reserve of RM194,000.
(b)
On 26 March 2014, Pantai Group Resources Sdn. Bhd. (“PGRSB”) acquired another 15.00% equity interest in Twin Towers Healthcare
Sdn. Bhd. (“TTHSB”) pursuant to the Share Sale Agreement dated 31 January 2012, for a total consideration of RM3,777,000. The said
acquisition increased PGRSB’s shareholdings in TTHSB from 85.00% to 100.00%.
The transaction resulted in a decrease in capital reserve and non-controlling interests of RM2,602,000 and RM1,175,000 respectively.
(c)
On 9 April 2014, PTM transferred 146,000 PLife REIT units that it owned to its eligible employees in accordance to PTM’s Long Term
Incentive Plan. Consequential thereto, the Group’s effective interest in PLife REIT was diluted from 35.78% to 35.76%.
The transaction resulted in an increase in capital reserve, non-controlling interests and hedge reserve of RM680,000, RM207,000 and
RM1,000 respectively, and a decrease in foreign currency translation reserve of RM4,000.
(d)
On 29 May 2014, Shanghai Mai Kang Hospital Investment Management Co., Ltd (“Shanghai Mai Kang”) acquired the remaining 15%
equity interest in Shanghai Rui Hong Clinic Co. Ltd (“Shanghai Rui Hong”) for a purchase consideration of RMB4,050,000 (equivalent to
RM2,085,000). Upon completion of the acquisition, Shanghai Rui Hong became an indirect wholly-owned subsidiary of the Company
with 70% equity interest held through Medical Resources International Pte Ltd (“MRI”) and the remaining 30% held through Shanghai
Mai Kang.
The transaction resulted in a decrease in capital reserve and non-controlling interests of RM213,000 and RM1,872,000 respectively.
(e)
On 30 May 2014, Shanghai Mai Kang acquired the remaining 15% equity interest in Shanghai Xin Rui Healthcare Co. Ltd (“Shanghai Xin
Rui”) for a purchase consideration of RMB41,210,000 (equivalent to RM21,215,000). Upon completion of the acquisition, Shanghai Xin
Rui became an indirect wholly-owned subsidiary of the Company with 70% equity interest held through MRI and the remaining 30% held
through Shanghai Mai Kang.
The transaction resulted in a decrease in capital reserve and non-controlling interests of RM2,602,000 and RM18,613,000 respectively.
(f)
ASH shares have ceased to be traded on the Istanbul Stock Exchange (“ISE”) after the second session of 4 October 2012. Following
this, the delisting process has been successfully completed. Any shareholders that were unable to redeem their shares during Mandatory
Takeover Offer (“MTO”) and Voluntary Takeover Offer (“VTO”) have the right to sell their shares for a three-year period from 26 July 2012,
being the date ISE granted its approval of ASH’s delisting. As at 31 December 2014, ASYH’s equity interest in ASH is 99.38%, following
the tender of shares.
The transaction resulted in a decrease in capital reserve and non-controlling interests of RM2,163,000 and RM2,840,000 respectively.
