Acquisition and Disposal of Subsidiaries

Acquisition of Pipe Services and Precision Manufacturing Business in the U.S.

In April 2013, the Group acquired pipe services and precision manufacturing business located in the U.S. for 26,600.

The fair values of assets acquired, liabilities assumed and purchase consideration were as follows at the acquisition date:

	Initial estimation of fair values	Final estimation of fair values
Property, plant and equipment	23 522	22 705
Intangible assets	648	1 606
Trade and other receivables	1 171	1 152
Inventories	1 823	1 660
Deferred tax asset	438	479
Total assets	27 602	27 602
Trade and other payables	(1 002)	(1002)
Total liabilities	(1 002)	(1 002)
Total identifiable net assets	26 600	26 600
Purchase consideration	(26 600)	(26 600)

During 2013, the Group paid the full amount of purchase consideration for the acquisition of the business.

Acquisition-related costs of 1,282 were charged to general and administrative expenses in the consolidated income statement for the year ended December 31, 2013.

Disposal of ООО “Skladskoy Kompleks ТМК”

On March 27, 2013, the Group sold 81% ownership interest in OOO “Skladskoy Kompleks ТМК”. The following table summarises the carrying values of assets and liabilities of OOO “Skladskoy Kompleks ТМК”, cash flows on disposal of subsidiary and the carrying value of investments retained by the Group as at the date of disposal:

	Carrying values
Cash and cash equivalents	1 932
Trade and other receivables	12 525
Inventories	7 927
Other assets	907
Total assets	23 291
Trade and other payables	(25 082)
Other liabilties	(39)
Total liabilities	(25 121)
Net liabilties	(1 830)
Cash consideration	(26)
19% ownership interest retained	(6)
Gain on disposal of subsidiary	1 862