Notes to the Financial Statements For the financial year ended 31 December 2024 29 ACQUISITION/DISPOSAL OF SUBSIDIARIES, NET OF CASH ACQUIRED/DISPOSED OF (continued) (d) Effects of disposals The cash flows and net assets of subsidiaries disposed of are provided below: Note 2024 2023 The Group $’M $’M Property, plant and equipment 830 – Investment properties 5 7,382 181 Joint ventures 1,062 – Other non-current assets 99 – Deferred tax asset 9 19 – Trade and other receivables 84 8 Other financial assets 34 – Assets held for sale 450 434 Cash and cash equivalents 673 11 Trade and other payables (239) (107) Other current liabilities (15) – Borrowings (3,584) (95) Deferred tax liabilities 9 (209) – Other non-current liabilities (4) – Liabilities held for sale (19) (137) Perpetual securities (396) – Non-controlling interests (3,020) (32) Equity interest retained as associates (1,143) – Equity interest retained as other investments (22) – Equity interest retained as joint venture – (13) Net assets disposed of 1,982 250 Realisation of reserves 140 29 (Loss)/gain on disposal of subsidiaries (95) 52 Sale consideration 2,027 331 Deferred proceeds and other adjustments (220) (57) Shareholder’s loan taken over by buyer – 66 Deferred proceeds received in relation to prior year’s disposal of a subsidiary – 49 Cash of subsidiaries disposed (673) (11) Cash inflow on disposal of subsidiaries 1,134 378 30 BUSINESS COMBINATIONS At the time of acquisition, the Group considers whether each acquisition represents the acquisition of a business or the acquisition of an asset. The Group accounts for an acquisition as a business combination where an integrated set of activities is acquired in addition to the property. Typically, the Group assesses the acquisition as a purchase of business when the strategic management function and the associated processes were purchased along with the underlying properties. There were no significant business combinations in 2024. 162 CapitaLand Investment Limited Notes to the Financial Statements For the financial year ended 31 December 2024 30 BUSINESS COMBINATIONS (continued) 2023 Acquisition of Quest Apartment Hotels (NZ) Limited On 31 August 2023, the Group acquired 100% of the shares and voting interests in Quest Apartment Hotels (NZ) Limited and its subsidiaries (QNZ) from unrelated parties. Following the acquisition, QNZ became a wholly-owned subsidiary of the Group. QNZ is the master franchisor for Quest brand in New Zealand since 2000. The acquisition of QNZ complements the Group’s lodging platform, generating asset-light, fee-related earnings (FRE), through management and franchising businesses. From the date of acquisition to 31 December 2023, QNZ contributed revenue of $3 million and net profit of $1 million to the Group’s results. If the acquisition had occurred on 1 January 2023, management estimates that the contribution to the Group’s revenue and net profits from QNZ would have been $10 million and $3 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 2023. Goodwill of $15 million (see note 4) was attributed to the lodging management business acquired, which was recognised as a result of the difference between the fair value of the Group’s interest in QNZ and the fair value of the assets acquired and liabilities assumed. 2023 $’M Intangible assets 18 Other current assets 1 Cash and cash equivalents 1 Current liabilities (1) Deferred tax liabilities (5) Total identifiable net assets 14 Goodwill on acquisition 15 Purchase consideration 29 Less: cash and cash equivalents in subsidiary acquired (1) Net cash outflow on acquisition 28 Total acquisition-related costs of $1 million related to legal, due diligence and tax advisory fees were included in administrative expenses in 2023. 163 Annual Report 2024
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