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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
11.
INVESTMENTS IN SUBSIDIARIES (CONT’D)
The following summarises the effect of changes in equity interest in AGTC and FPPL that is attributable to owners of
the Company:
AGTC
FPPL
Total
2015
2015
2015
RM
RM
RM
Equity interest at 1 January 2015
40,475,049
2,117,339
42,592,388
Effect of increase in Company’s ownership interest
5,909,957
1,879,320
7,789,277
Share of comprehensive income
14,183,937
(317,151)
13,866,786
Equity interest at 31 December 2015
60,568,943
3,679,508
64,248,451
There were no acquisitions of non-controlling interests in the previous financial year.
(iii) the Company and its subsidiary, AGIC had on 19 August 2015 entered into a Sale and Purchase Agreement with
MIC-Tech Ventures Asia Pacific Inc. to dispose of 60% of the issued and paid-up share capital of FMIC comprising
10,903,805 ordinary shares of HKD1.00 each for a cash consideration of USD90,000. The disposal was completed
on 30 September 2015, whereupon FMIC ceased to be a subsidiary of the Group.
The details of the assets, liabilities and cash flows arising from the disposal of FMIC were as follows:
The Group
2015
RM
Other receivables
515,491
Cash and cash equivalents
1,145,245
Trade and other payables
(20,266)
Less: Non-controlling interests
589,373
Group’s interest in fair value of net identifiable assets
2,229,843
Loss on disposal of subsidiary
(1,870,011)
359,832
Less: Cash and cash equivalents in subsidiary disposed
(1,145,245)
Net cash outflow on disposal
(785,413)
In the previous financial year:-
(i)
on 28 August 2014, FMIC, a subsidiary of the Company, increased its issued and paid-up capital from
HKD14,990,812 to HKD18,173,025 by the allotment and issuance of 3,182,213 new ordinary shares of HKD1.00
each at par for cash.
Pursuant to the above allotment of 3,182,213 new ordinary shares, the Company’s effective equity interest in
FMIC, held directly and indirectly by the Company diluted from 41.61% to 40.43%.
(ii) on 30 April 2014, the Company entered into a Sale and Purchase Agreement to acquire 900,000 ordinary shares of
RM1.00 each (“TTES Shares”) representing 45% of the issued and paid-up share capital of TTES for a total cash
consideration of approximately RM11 million or approximately RM12.22 per TTES Share.
NOTES TO THE FINANCIAL STATEMENTS
(cont’d)