KENANGA ANNUAL REPORT 2019

193 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 13. INVESTMENTS IN SUBSIDIARIES Bank 2019 RM’000 2018 RM’000 Unquoted shares: At beginning of the financial year 70,428 72,564 Less: Impairment losses (293) (2,136) At end of the financial year 70,135 70,428 (i) On 8 July 2019, the Bank’s asset management subsidiary, Kenanga Investors Berhad (“KIB”) completed the acquisition of 100% equity stake in Libra Invest Berhad (“LIB”). (ii) Business combinations Pursuant to the SPA, the acquisition involves KIB acquiring shares of LIB for an aggregate purchase consideration of RM50.6 million. The purchase consideration was fully paid by cash. Accounting for acquisition at the Group level At the Group level, the Group’s acquisition of the assets and liabilities of LIB was accounted for using the acquisition method of accounting in accordance with MFRS 3 Business Combinations . Fair value RM’000 Recognised amounts of identifiable assets and liabilities: Cash and bank balances 25,233 Other receivables 3,837 Tax recoverable 211 Property, plant and equipment 428 Intangible assets 1,087 Right-of-use assets 55 Other payables (15,046) Deferred tax liabilities (133) Lease liabilities (56) Total net assets 15,616 Goodwill 35,000 50,616 Consideration settled in cash 50,616 Less: Cash and cash equivalents of subsidiary acquired (25,233) Net cash outflow on acquisition 25,383