122
123
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
14. Investment inassociates
Group
Company
2012
2011
2012
2011
$
$
$
$
Shares, at cost
32,030,623
9,616,388 32,030,623
9,616,388
Share of post-acquisition reserves
(11,000)
742,035
–
–
32,019,623 10,358,423 32,030,623
9,616,388
The carrying cost of the investment in associates is represented by:
Group
2012
2011
$
$
Share of net assets
29,659,623 10,358,423
Goodwill on acquisition
2,360,000
–
32,019,623 10,358,423
Associates
(Country of incorporation)
Percentage of
equity held
by theGroup
Principal activity
2012 2011
% %
(1)
York Transport Equipment (Asia) Pte Ltd
(Singapore)
–
49 Production and distribution of
axles and related components
(2)
DiscoveryOffshore S.A.
(Luxembourg)
20
– Ownership of jack-up rigs to serve
customers in the exploration and
production sector
(1)
Audited by Ernst & Young LLP, Singapore
(2)
Audited by Ernst & Young LLP, Luxembourg
14. Investment inassociates (cont’d)
The summarised financial information of the associates, not adjusted for the proportion of ownership interest
held by theGroup, is as follows :
Group
2012
2011
$
$
Assets and liabilities :
Total assets
149,609,810 55,709,849
Total liabilities
3,292,684 36,824,979
Results :
Revenue
– 85,454,740
Net loss for the year
(1,919,038)
(503,890)
Acquisition of associate
During the current financial year, theCompany purchased additional 2,060,513 shares in DiscoveryOffshore
S.A. (“DO”) from the open market for a total consideration of $4,412,595. As a result, the Company now
holds approximately20% in the issued share capital of DO. TheCompany has also re-designated its investment
in DO from that of an available-for-sale investment to an associate.
DO was incorporated on 12 January 2011 with the purpose of owning new ultra high-specification jack-up
drilling rigs. Itsmain assets are two high specification jack-up drilling rigs that are currently under construction,
with delivery scheduled in year 2013. The shares of DOwere listed on theOslo Axess Stock Exchange since
2May 2011. As at 31 December 2012, the fair value of instrument in DO for which there is published price
quotationwas approximately $31,947,000.
Disposal of associate
TheCompany had entered intoaCall and PutOptionsAgreement on5October 2007with TRF Limited (“TRF”),
the other 51% shareholder of York Transport Equipment (Asia) Pte Ltd (“York”) for its remaining 49% stake in
York.
Under the agreement, theCompany had granted a call option to TRF and TRF had also granted a put option to
the Company, which when exercised, the Company will sell its remaining 49% stake in York to TRF at a base
price of $18,425,000 plus 49% of the consolidated undistributed net profit of York from1 January 2008. The
Company will receive an additional amount of equal to 15% of $18,425,000 if the call option is exercised.
TheCompany did not prescribe any value to these call and put options since the date of inception.
for the financial year ended 31december 2012
for the financial year ended 31december 2012
notestothe
financialstatements
notestothe
financialstatements
