Singapore Airlines 2009 Annual Report Download - page 165

163
22 Subsidiary Companies (in $ million) (continued)
Acquisition of subsidiary companies (continued)
Singapore Food Industries Limited (“SFI”) (continued)
Total cost of business combination
The total cost of the business combination is as follows:
Consideration for 100.0% equity interest:
- Cash paid 476.0
- Directly attributable professional fees 4.4
- Deferred cash settlement 6.8
487.2
The effect of acquisition on cash fl ows is as follows:
Total consideration for 100.0% equity interest 487.2
Less: Deferred cash settlement (6.8)
Consideration settled in cash 480.4
Less: Cash and cash equivalents of subsidiary company acquired (26.8)
Net cash outfl ow on acquisition 453.6
Impact of acquisition on profi t and loss account
From the date of acquisition, SFI has contributed $4.0 million to the Group’s profi t after tax. If the combination
had taken place at the beginning of the fi nancial year, the Group’s profi t after tax would have been $1,165.0
million and total revenue would have been $16,564.4 million.
Goodwill arising on acquisition
Goodwill of $239.3 million arose from the acquisition of 100.0% equity interest in SFI and is attributable to
the fair value of improved resilience to sector specifi c volatilities and signifi cant synergies expected to arise
after the acquisition.
Provisional accounting of acquisition
SATS Group has engaged independent valuers to determine the fair values of the acquired assets and
liabilities. As at 31 March 2009, the fair values of the assets and liabilities have been determined on a
provisional basis as the fi nal results of the independent valuations have not been received by the date the
fi nancial statements were authorised for issue. Goodwill arising from this acquisition, the carrying amount of
the identifi able intangible assets and deferred tax liability might be adjusted accordingly on a retrospective
basis when the valuations of the assets and liabilities are fi nalised in the next fi nancial year.