NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
136
CITIC ENVIROTECH LTD.
Annual Report
2015
40 ACQUISITION OF SUBSIDIARIES (cont’d)
Analysed as:
Total
$’000
Consideration paid in the form of shares of the Company
236,375
Liabilities of Memstar assumed by the Company
38,334
Consideration paid in cash
32,777
Total consideration paid
307,486
Net cash outflow on acquisition of subsidiary
Consideration paid in cash
32,777
Less: Cash and cash equivalents acquired
(10,494)
Net cash outflow
22,283
Goodwill arose in the acquisition of Memstar because of the expected synergies, revenue growth,
future market development and the assembled workforce of Memstar. These benefits are not
recognised separately from goodwill because they do not meet the recognition criteria for
identifiable intangible assets.
The acquisition of the subsidiaries resulted in inclusion of post-acquisition revenue of $65,261,000
and profit of $16,036,000 in the Group’s financial statements for the year ended March 31, 2015.
Had the business combination during the year been effected at April 1, 2014, the revenue of the
Group would have been $350,545,000 and the profit for the year ended March 31, 2015 would have
been $62,959,000.
