94
CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
11.
INVESTMENT IN ASSOCIATE
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Shares, at cost
18,147
18,147
18,220
18,220
Share of post-acquisition results
of associate
(238)
58
–
–
Foreign currency translation reserve
(311)
(1)
–
–
Dividends received
(917)
(917)
–
–
Unrealised share of other income
from associate
(212)
(318)
–
–
Amortisation of intangible assets
identified upon acquisition
of associate
(280)
(150)
–
–
Impairment loss
(2,646)
–
(4,677)
–
At 30 June
13,543
16,819
13,543
18,220
Fair value of investment in associate
for which there is published
price quotation
9,838
13,954
9,838
13,954
Name of company
Country of
incorporation
Principal activities
Proportion of
ownership interest
2015
2014
%
%
StemLife Berhad
1
Malaysia
Cord blood and cord lining
banking services
31.81
31.81
1
Audited by Ernst & Young, Kuala Lumpur
Acquisition of associate
On 4 October 2013, the Group acquired a 19.92% interest in StemLife Berhad (“StemLife”) at a consideration
of $11.1 million, comprising $1.1 million (RM2.9 million) in cash and $10.0 million in ordinary shares issued by
the Company (8 million shares at market price on date of issuance of $1.25 per share).
As part of the sale and purchase agreement (“SPA”) with two shareholders (the “Vendors”) of StemLife, the
Vendors undertake that they shall endeavour to support the appointment of up to two nominee directors of
the Group to the StemLife board. The Group succeeded in having Mr Jeremy Yee and Dr. Ho Choon Hou to
the StemLife board on 9 December 2013.
The Group determined that it had significant influence over StemLife following the acquisition of 19.92%
interest in StemLife and had therefore accounted for StemLife as an associate using the equity method.
On 9 December 2013, the Group acquired an additional interest in StemLife at a cash consideration of $7.0
million (RM17.7 million), increasing its total interest to 31.81%.
The Group’s interest in StemLife is in line with the Group’s intention to expand its business and operations
overseas. Through StemLife and its associated company, Thai StemLife Co., Ltd., the Group is able to expand
its geographical footprint in Asia to Malaysia and Thailand and extend the group’s reach of complementary
services such as cord lining banking.
