ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) F2 Acquisition and disposal of controlling interests in subsidiaries in 2020/2019 Acquisition of controlling interest in subsidiaries in 2019 (i) Acquisition of controlling interests in MRA Systems, LLC (MRAS) On 18 April 2019, the Group acquired 100% of MRAS for a net cash consideration of $689 million. MRAS specialises in production of engine nacelle systems and thrust reversers, along with complex aerostructures for applications on commercial and military aircraft. MRAS contributed revenue of $728,601,000 and net profit of $45,854,000 to the Group for the period from 18 April 2019 to 31 December 2019. (ii) Acquisition of controlling interests in Glowlink Communications Technology, Inc (Glowlink) On 17 September 2019, the Group acquired 100% of Glowlink for a net cash consideration of $26 million. Glowlink provides innovative, affordable, and easy to use products aimed at improving the integrity of satellite communications, and mitigating interferences to enhance the quality of satellite signals received. Glowlink contributed revenue of $3,706,000 and net loss of $825,000, after transaction costs, to the Group for the period from 17 September 2019 to 31 December 2019. (iii) Acquisition of controlling interests in Newtec Group NV, subsequently renamed to ST Engineering iDirect (Europe) NV (iDirect Europe) On 1 October 2019, the Group acquired 100% of iDirect Europe for a net cash consideration of $335 million. iDirect Europe specialises in designing, developing and manufacturing equipment and technologies for satellite communications. iDirect Europe contributed revenue of $35,717,000 and incurred net loss of $5,045,000 to the Group, after transaction costs, for the period from 1 October 2019 to 31 December 2019. Had the above businesses been consolidated from 1 January 2019, consolidated revenue and net profit for the year ended 31 December 2019 would have been $8,271,702,000 and $614,922,000 respectively. / ST ENG I NEER I NG 256