210 Notes to the Consolidated Financial Statements 31 December 2023 34. BUSINESS COMBINATION In April 2023, the Group, through its subsidiary, completed the acquisition of ARA Europe REIT Manager Limited (“ARAE Manager”) with economic interest of 90.20%. The Group has elected to measure the non-controlling interests in ARAE Manager at the non-controlling interests’ proportionate share of ARAE Manager’s identifiable net assets. The fair values of the identifiable assets and liabilities and goodwill on acquisition at the date of acquisition as disclosed in the table below have been measured on a provisional basis. Net assets acquired US$’000 Net assets acquired Property, plant and equipment 129 Cash and bank balances 2,806 Other assets 3,883 Other liabilities (13,385) Total identifiable net assets at fair value (6,567) Goodwill on acquisition 27,075 Management rights arising from acquisition 14,117 Non-controlling interests (4,406) 30,219 Satisfied by Cash 15,319 Consideration payable 14,900 30,219 The Group incurred transaction costs of US$1,395,000 for this acquisition. These transaction costs have been expensed and are included in Administrative expenses in the consolidated statement of profit or loss. An analysis of the cash flows in respect of the acquisition of a subsidiary are as follows: Cashflow on acquisition US$’000 Cash consideration 15,319 Cash and bank balances acquired (2,806) Net outflow of cash and cash equivalents included in cash flows related to investing activities 12,513 Since the acquisition, ARAE Manager contributed US$10,275,000 to the Group’s revenue and US$2,227,000 to the consolidated profit for the year ended 31 December 2023. Had the combination taken place at the beginning of the year, the revenue from continuing operations of the Group and the profit of the Group for the year ended 31 December 2023 would have been US$883,308,000 and US$269,831,000, respectively. STRENGTH IN UNITY
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