153 Annual Report 2024 5. Investment in subsidiaries and amounts due from/(to) subsidiaries (cont’d) Acquisition of businesses in 2023 Acquisition of business in New Zealand In April 2023, a wholly-owned subsidiary of the Group, CSE New Zealand Ltd acquired 100% of the issued share capital in TL Parker Ltd, Parker Communication Limited and the remaining 50% shares in Orion NZ Radio Group Limited (collectively referred as “TL Parker”) for a consideration of NZD 2.7 million (approximately $2.2 million). The acquisition allowed the Group to expand and extend its existing radio communication business and solutions to its customers in New Zealand. The purchase price allocation of the acquisition was provisional in the Group’s financial statement for the year ended 31 December 2023. Subsequent to the completion of the purchase price allocation in current financial year, the Group made certain adjustments to the valuation of the business recorded the adjustments in the current financial year as follows: Fair value Adjustments Fair value recognised $’000 $’000 $’000 Customer relationship – 530 530 Property, plant and equipment 349 – 349 Right-to-use assets 61 – 61 Inventories 130 – 130 Trade and other receivables 706 – 706 Cash and bank balances 2 – 2 Total assets 1,248 530 1,778 Trade and other payables (603) – (603) Lease liabilities (59) – (59) Loans and borrowings (35) – (35) Deferred tax liability – (149) (149) Tax payables (8) – (8) Total liabilities (705) (149) (854) Total identifiable net assets at fair value 543 381 924 Goodwill arising from acquisition 1,670 (381) 1,289 Cash paid on acquisition 2,213 – 2,213 Less: cash and bank balances (2) – (2) Less: contingent consideration (812) – (812) Cash paid on acquisition, representing net cash outflow on acquisition 1,399 – 1,399 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024
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