Singapore Airlines 2009 Annual Report Download - page 163

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22 Subsidiary Companies (in $ million) (continued)
Acquisition of subsidiary companies
SATS Hong Kong Limited (“SATS HK”)
On 11 November 2008, SATS acquired 100.0% of Menzies Aviation (Hong Kong) Ltd (“MAHK”) for a cash
consideration of $5.2 million. The purchase consideration was based on the net asset value of MAHK, on
a cash-free, debt-free basis. Upon the acquisition, MAHK became a wholly-owned subsidiary company of
SATS Group and was renamed to SATS HK.
The fair values of the identifi able assets and liabilities of SATS HK as at the date of acquisition were:
Recognised on date Carrying amount
of acquisition before combination
Property, plant and equipment 3.0 3.0
Other non-current assets 2.5 -
Trade and other debtors 2.6 2.6
Cash and cash equivalents 1.0 1.0
9.1 6.6
Trade and other creditors 1.4 1.4
Net identifi able assets 7.7 5.2
Total cost of business combination
The total cost of the business combination for the consideration of 100.0% equity interest is paid fully in
cash at $5.2 million.
The effect of acquisition on cash fl ows is as follows:
Consideration settled in cash 5.2
Less: Cash and cash equivalents of subsidiary company acquired (1.0)
Net cash outfl ow on acquisition 4.2
Impact of acquisition on profi t and loss account
From the date of acquisition, SATS HK has increased the Group’s profi t after tax by $0.4 million. If the
combination had taken place at the beginning of the fi nancial year, the Group’s profi t after tax would have
been $1,147.4 million and total revenue would have been $16,004.9 million.