171 5
INDORAMA VENTURES PUBLIC COMPANY LIMITED
Acquisitions of businesses Gains on bargain purchases The excess of the Group’s interest in the net identified assets and liabilities of the companies acquired over cost during the years ended 31 December 2011 and 2010 is considered by management as gains on bargain purchases, and is recognized in the consolidated statement of income for years ended 31 December 2011 and 2010 and comprised the following: Note
2011
2010
(in thousand Baht) Grupo Arteva, S. de R.L. de C.V., Mexico
5(iii)
1,826,218
-
5(v)
1,530,365
-
Limited, China
5(vi)
406,754
-
Indorama Polymers Poland Sp. z o.o., Poland Guangdong IVL PET Polymer Company Auriga Polymers Inc., USA
5(vii)
2,855,832
-
Wellman International Limited, Ireland
5(ix)
133,395
-
Europoort Utility Partners VOF, the Netherlands
5(i)
-
562,797
6,752,564
562,797
Total gains on bargain purchases
In accordance with TFRS3, management is required to make a preliminary assessment of the fair values of businesses acquired as at the acquisition date. During the measurement period, which must not exceed one year from the acquisition date, the acquirer shall retrospectively adjust the provisional amounts recognised at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date. Finalisation of the fair values for certain acquisitions of businesses acquired during 2011 is dependent on determination of the ultimate purchase price and completion of the purchase price allocation exercise. During the years ended 31 December 2011 and 2010, the Group incurred acquisition-related costs of Baht 613.4 million and Baht 28.6 million, respectively, relating to external legal fees and due diligence costs. These amounts have been included in administrative expenses in the consolidated statement of income for the years ended 31 December 2011 and 2010, respectively.
(i)
Europoort Utility Partners VOF, the Netherlands
On 4 May 2010, the Group acquired the net assets (inventories, property, plant and equipment and intangible assets) and assumed the operation of a utility production facility located on the premises of Indorama Holdings Rotterdam B.V., previously owned and operated by Europoort Utility Partners VOF, a joint venture company in the Netherlands. The net assets were acquired for a cash consideration of EUR 24.6 million (Baht 1,048.9 million) and the transaction is accounted for as a business combination.