115 / 152
Notes to the
financial statements
For the financial year ended 31 December 2018
113
A N N U A L R E P O R T
2 0 1 8
12.
Investment in subsidiaries (cont’d)
(c)
Summarised financial information about subsidiary with material NCI (cont’d)
Other summarised information
CH Offshore Ltd
27.8.2018
to
31.12.2018
$’000
Net cash flows from operations
2,155
Repayment from associate
663
(d)
Acquisition of subsidiary
On 26 July 2018, the Group acquired 371,646,150 shares (or 52.72%) in CH Offshore Ltd
(“CHO”), which principally engages in the owning and chartering of offshore services vessels,
for approximately $45.0 million from two unrelated vendors. Subsequently, the Group
acquired additional 15,889,150 shares in CHO (or 2.26%) for approximately $2.1 million
under the mandatory unconditional cash offer in accordance with Rule 14.1 of the Singapore
Code of Take-overs and Mergers.
The Group has ascertained the date of acquisition to be on 27 August 2018 in accordance to
SFRS(I) 3, representing the date whereby four representatives of the Group were nominated
into CHO’s Board of Directors. As a result, the Group commenced the consolidation of CHO
as a 54.98% owned subsidiary into its consolidated financial statements as of that date.
The Group has acquired CHO as it is complementary to the Group’s business and is in line
with the strategy to expand its future asset and earnings base. The investment in CHO also
provides an attractive platform to build the Group’s offshore support services.