189
CapitaLand Limited
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
Notes to the Financial Statements
32 Business Combinations
(continued)
Acquisition of CapitaLand China Development Fund Pte. Ltd.
On 30 July 2015, the Group acquired 62.5% of the redeemable preference shares (RPS) in CapitaLand China Development
Fund Pte. Ltd. (CCDF). As a result, the Group’s equity interest in CCDF increased from 37.5% to 100%, obtaining control
of CCDF. CCDF, through its group of companies (collectively known as CCDF Group), invests in residential development
projects in China.
The acquisition is part of the Group’s ongoing business development and is in line with Group’s strategy to further
strengthen its presence in China.
From the date of acquisition to 31 December 2015, CCDF Group contributed revenue of $59.8 million and net profit
of $0.7 million to the Group’s results. If acquisition had occurred on 1 January 2015, management estimates that the
contribution to the Group in terms of revenue and net loss would have been $136.6 million and $6.0 million respectively.
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 2015.
Purchase consideration
The consideration for the acquisition was $68.4 million and was settled in cash. No contingent consideration or
indemnification asset was recognised at the acquisition date.
The identifiable assets acquired, liabilities assumed and effect of cash flows are presented as follows:
2015
$’000
Property, plant and equipment
133
Deferred tax assets
4,707
Other non-current assets
1,422
Development properties for sale
93,186
Cash advances to shareholders
113,546
Cash and cash equivalents
216,760
Other current assets
142,624
Current liabilities
(267,682)
Non-current liabilities
(10,863)
Deferred tax liabilities
(15,666)
Total identifiable net assets
278,167
Less: Amount previously accounted for as an associate, at fair value
(138,782)
Net assets acquired
139,385
Assumption of shareholder’s loan
(70,966)
Total purchase consideration
68,419
Less: Cash and cash equivalents in subsidiary acquired
(216,760)
Net cash inflow on acquisition
(148,341)
