ESR IR 2021 - EN

71 ESR Interim Report 2021 Notes to Condensed Consolidated Financial Information 30 June 2021 18. 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 a joint venture of the Group in Australia. The fair values of the identifiable assets and liabilities of MOL 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$’000 Net assets acquired Cash and bank balances 8,813 Prepayments, other receivables and other assets 18 Property, plant and equipment 77 Other intangible assets 23,875 Deferred tax assets 40 Trade payables, accruals and other payables (132) Deferred tax liabilities (7,164) 25,527 Goodwill on acquisition 332,888 358,415 Satisfied by Cash 358,415 An analysis of the cash flows in respect of the acquisition of subsidiaries are as follows: Cashflow on acquisition US$’000 Cash consideration (358,415) Cash and bank balances acquired 8,813 Net outflow of cash and cash equivalents included in cash flows used in investing activities (349,602)