12.
INVESTMENT IN SUBSIDIARIES (CONTINUED)
(d)
Acquisition of ownership interest in subsidiary
Niho (Singapore) Pte Ltd (“Niho”)
On 6 May 2015, the Group’s subsidiary company, HG Metal Investments Pte Ltd (“HGMI”)
acquired an additional 40.97% equity interest in Niho from its non-controlling interests for a
cash consideration of $94,000. As a result of this acquisition, Niho became a wholly-owned
subsidiary of HGMI.
The carrying amount of the non-controlling interest in Niho at 6 May 2015 was $60,000. The
difference of $34,000 between the consideration and the carrying value of the non-controlling
interest acquired has been recognised as “Premium paid on acquisition of non-controlling
interests” within equity.
The following summarises the effect of the changes in the Group’s ownership interest in Niho
on the equity attributable to owners of the Company:
$’000
Consideration paid for acquisition of non-controlling interests
94
Decrease in equity attributable to non-controlling interests
(60)
Premium paid on acquisition of non-controlling interests
34
Jin Heng Li Hardware Sdn Bhd (“JHL”)
On 4 August 2014, the Company acquired an additional 20.15% equity interest in JHL from its
non-controlling interests for a cash consideration of $626,000. As a result of this acquisition,
the Company’s ownership interest in JHL increased to 79.38% from 59.23%.
The carrying value of the net assets of JHL at 4 August 2014 was $2,230,000 and the
carrying value of the additional interest acquired was $449,000. The difference of $177,000
between the consideration and the carrying value of the additional interest acquired has
been recognised as “Premium paid on acquisition of non-controlling interests” within equity.
The following summarises the effect of the changes in the Group’s ownership interest in JHL
on the equity attributable to owners of the Company:
$’000
Consideration paid for acquisition of non-controlling interests
626
Decrease in equity attributable to non-controlling interests
(449)
Premium paid on acquisition of non-controlling interests
177
89
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
