NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021 32. BUSINESS COMBINATION Milestone Operations Limited (“MOL”) On 17 June 2021, the Group, through its wholly-owned subsidiary, ESR Landmark Pty Ltd, completed the acquisition of 100% equity interests in MOL. The acquisition of MOL was identified as a business combination by the management. Milestone is a fully operational company as at the acquisition date and its principal activity is to provide support and trustee services to the properties held by an associate of the Group in Australia. The fair values of the identifiable assets and liabilities of MOL and goodwill on acquisition as disclosed in the table below. Net assets acquired US$’000 Net assets acquired Cash and bank balances 8,813 Prepayments, other receivables and other assets 18 Property, plant and equipment 77 Deferred tax assets 40 Trade payables, accruals and other payables (134) Total identifiable net assets at fair value 8,814 Deferred tax asset on cost reimbursement recognised 91,303 Deferred tax liability on management rights recognised (7,162) GST receivable 30,434 Other intangible assets 23,875 Goodwill on acquisition 202,393 349,657 Satisfied by Cash 349,657 An analysis of the cash flows in respect of the acquisition of subsidiaries are as follows: Cashflow on acquisition US$’000 Cash consideration (349,657) Cash and bank balances acquired 8,813 Net outflow of cash and cash equivalents included in cash flows used in investing activities (340,844) For the year ended 31 December 2021, MOL contributed Nil revenue and a loss of US$2,562,000 in the Group’s results. The Group also recorded management fee income of US$9,014,000 from an associate of the Group of which MOL acts as trustee. Detail of the associate is disclosed in Note 15. 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 would have been US$404,426,000 and US$376,762,000, respectively. E S R C A Y M A N L I M I T E D A N N U A L R E P O R T 2 0 2 1 211
RkJQdWJsaXNoZXIy ODIwNTc=