ACQUISITIONS, DISPOSALS, AND LIQUIDATION OF SUBSIDIARIES

Adaro Energy Annual Report 2009 155 www.adaro.com PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 517 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008 Expressed in million Rupiah, unless otherwise stated

3. ACQUISITIONS, DISPOSALS, AND LIQUIDATION OF SUBSIDIARIES continued

c. Acquisition of PT Makmur Sejahtera Wisesa continued

The restructuring transactions of January 2008 were accounted for using the pooling-of-interests method as required under SFAS No. 38 Revised 2004, since the Company, SSB and PCI are entities under common control. The details of the book value of the net assets acquired and the difference arising from restructuring transaction of entities under common control are as follows: 2008 Purchase consideration through cash payment 23,049 Purchase consideration through exchange of the Company’s new shares 22,185 45,234 Book value of net assets acquired 43,193 Difference in value from restructuring transactions of entities under common control 2,041 Difference in value from restructuring transactions of entities under common control - 2005 212 Difference in value from restructuring transactions of entities under common control - 2008 2,041 Difference in value from restructuring transactions of entities under common control 2,253 On 26 September 2008, MSW increased its issued and paid in capital through the issuance of 3,496,000 new shares with a par value of Rp 50,000 full amount per share. The Company acquired all the new shares issued, and the Company’s interest in MSW increased from 99.60 to 99.91. The details of the net assets acquired and goodwill are as follows: 2008 Purchase consideration through cash payment 174,800 Fair value of net assets acquired 174,782 Goodwill 18 On 23 December 2008, MSW increased its issued and paid in capital through the issuance of 437,535 new shares with a par value of Rp 50,000 full amount per share. The Company acquired 437,535 of the new shares issued amounting to Rp 21,877, and the Company’s interest in MSW increased from 99.91 to 99.92. 2008 Purchase consideration through cash payment 21,877 Fair value of net assets acquired 21,877 Goodwill - On 16 July 2009, MSW increased its issued and paid in capital through the issuance of 824,960 new shares with a par value of Rp 50,000 full amount per share. The Company acquired 824,960 of the new shares issued amounting to Rp 41,248, and the Company’s interest in MSW increased from 99.92 to 99.93. 2009 Purchase consideration through cash payment 41,248 Fair value of net assets acquired 41,247 Goodwill 1 On 1 October 2009, ATA purchased 0.07 interest in MSW from PT Akraya International for Rp 192. From this transaction, the Company owns 100 direct and indirect interest in MSW. 2009 Purchase consideration through cash payment 192 Fair value of net assets acquired 163 Goodwill 29 From this transaction, the Group recognised pre-acquisition loss amounting to Rp 26.