Annual Report 2019

221 ANNUAL REPORT 2019 40. ACQUISITION OF SUBSIDIARIES (CONTINUED) For the year ended 31 December 2018 (Continued) HK$’million Net cash outflow arising in the TCP Acquisition: Cash consideration 6,731 Less: Cash and bank balances acquired (1,103) Net cash outflow during the year ended 31 December 2018 5,628 Trade debtors acquired with a fair value of HK$134 million at the date of acquisition had gross contractual amounts of HK$138 million. The best estimate at acquisition date of the contractual cash flows not expected to be collected amounted to HK$4 million. The non-controlling interests in TCP Group recognised were measured by reference to the fair values of the identifiable assets acquired and liabilities assumed at the acquisition date. Acquisition-related costs amounting to HK$4 million had been excluded from the consideration transferred and recognised as an administrative expense in the consolidated statement of profit or loss for the year ended 31 December 2018. Goodwill arose on the TCP Acquisition during the year ended 31 December 2018: HK$’million Cash consideration 6,731 Add: Put option derivative 189 Add: Non-controlling interests 226 Less: Fair values of identifiable net assets acquired (2,260) Goodwill arose on acquisition 4,886 Goodwill arose in the acquisition of TCP Group because the cost of the acquisition included a control premium. In addition, the consideration paid for the acquisition effectively included amounts in relation to the benefit of expected synergies as a result of the new presence in Latin America region which would further strengthen the Group’s global port network. These benefits were not recognised separately from goodwill because they did not meet the recognition criteria for identifiable intangible assets. Included in the profit and revenue of the Group for the year ended 31 December 2018 were net profit of HK$107 million and revenue of HK$1,373 million generated by TCP Group.