188 | CapitaLand Limited Annual Report 2014
Appendix
Notes to the Financial Statements
Year ended 31 December 2014
32 BUSINESS COMBINATIONS
The Group has the following business combination during the year
Acquisition of CapitaLand (Beijing) Kai Heng Holdings Pte Ltd
On 25 July 2014, the Group acquired an additional 80% interest in CapitaLand (Beijing) Kai Heng Holdings Pte Ltd
(CBKH) from its 37.5% associate, CapitaLand China Development Fund Pte Ltd (CCDF). Following the acquisition,
the Group’s interest in CBKH increased from 50% to 100%.
CBKH owns a 100% economic interest in Beaufort, a residential site located at Chaoyang District, Beijing held
through Beijing Heng Shi Tong Fang Real Estate Development Co., Ltd., a company incorporated in The People’s
Republic of China, in which CBKH owns a 95.52% interest (collectively known as CBKH Group).
The acquisition is part of the Group’s ongoing business development and is in line with the Group’s strategy to
further strengthen its presence in China.
CBKH Group contributed net promt of $1.9 million to the Group’s results from 25 July 2014 to 31 December 2014.
If the acquisition had occurred on 1 January 2014, management estimates that the net promt contribution from
CBKH would have been $6.4 million. In determining this amount, management has assumed that the fair value
adjustments that arose on the date of acquisition would have been the same if the acquisition had occurred on
1 January 2014.
Purchase consideration
The consideration for the acquisition was $41.4 million, which included the assignment of shareholder’s loan due from
CBKH Group to its previous shareholder, and was settled in cash. No contingent consideration or indemnimcation
asset was identimed at the acquisition date.
A gain on bargain purchase of $12.8 million was recognised in promt or loss as a result of the difference between
consideration transferred and the fair value of the identimable net assets.
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2014
$’000
Property, plant and equipment
109
Development properties for sale
16,446
Cash and cash equivalents
18,360
Other current assets
137,309
Current liabilities
(98,100)
Shareholder’s loan
(40,643)
Deferred tax liabilities
(649)
Non-controlling interests
(6,091)
Total identimable net assets
26,741
Less Amount previously accounted for as an associate, at fair value
(13,185)
Net assets acquired
13,556
Gain from bargain purchase
(12,790)
Assumption of shareholder’s loan
40,643
Total purchase consideration
41,409
