PRG Holdings Berhad Annual Report 2018

9. INVESTMENTS IN SUBSIDIARIES (continued) (c) Internal reorganisation On 4 January 2018, the Group undertook an internal reorganisation for the property division. PRG Property Sdn. Bhd. (“PRGPSB”) disposed its entire equity interest in Premier Construction (International) Sdn. Bhd. (“PCISB”) to PRG Construction Sdn. Bhd.. (d) Disposal of 12% equity interest in Furniweb Holdings Limited ("FHL") On 3 October 2018, the Company has disposed 60,480,000 ordinary shares of Hong Kong Dollar (HKD) 0.10 each (“Sale Shares”) to independent third parties, representing 12% equity interest in FHL at HKD0.50 (equivalent to RM0.26) per Sale Share for a total cash consideration of RM15,909,000. Upon completion of the Proposed Disposal, PRG’s shareholdings in FHL is reduced from 378,000,000 ordinary shares representing 75% to 317,520,000 ordinary shares representing 63%. The disposal of the above 12% equity interest in FHL resulted in an increase in the Company’s profit for the financial year by RM4,765,000. The Company’s gain on disposal of RM4,765,000 is reversed at the Group level as charges in a parent’s interest in a subsidiary that do not results in a loss of control are accounted for as equity transaction (i.e. transactions with owners in their capacity as owners). (e) In the previous financial year: (i) On 3 March 2017, the Company incorporated and subscribed for 1,000,000 ordinary shares representing 100% equity interest in Furniweb Holdings Limited (“FHL”), a company incorporated in the Cayman Islands, as an exempted company with limited liability. On 21 September 2017, 19,000,000 new ordinary shares of FHL were allotted and issued, credited as fully paid, together with 1,000,000 shares which were allotted and issued earlier on, credited as fully paid, to the Company as a consideration to dispose its entire equity interest in FIPB International Limited (“FIPB”) to FHL. (ii) On 13 April 2017, the Company incorporated and subscribed for one (1) ordinary share representing 100% equity interest in Premier International Marketing Sdn. Bhd., a company incorporated in Malaysia, for a total consideration of RM1.00. The one (1) ordinary share was transferred to PRG Agro Sdn. Bhd. (“PRG Agro”) for a total consideration of RM1.00 on 11 July 2017. (iii) On 22 May 2017, the Company incorporated and subscribed for one (1) ordinary share representing 100% equity interest in PRG Agro, a company incorporated in Malaysia, for a total consideration of RM1.00. (iv) On 6 June 2017, the Company incorporated and subscribed for one (1) ordinary share representing 100% equity interest in PRG Asset Sdn. Bhd., a company incorporated in Malaysia, for a total consideration of RM1.00. (v) On 28 June 2017, the Company incorporated and subscribed for one (1) ordinary share representing 100% equity interest in PRG Construction Sdn. Bhd. (“PRGCSB”), a company incorporated in Malaysia, for a total consideration of RM1.00. (vi) On 8 August 2017, the Company incorporated and subscribed for one (1) ordinary share representing 100% equity interest in Premier JPC Sdn. Bhd. (“PJPC”), a company incorporated in Malaysia, for a total consideration of RM1.00. (vii) On 22 August 2017, the Company incorporated and subscribed for one (1) ordinary share representing 100% equity interest in PRG Management Services Sdn. Bhd., a company incorporated in Malaysia, for a total consideration of RM1.00. (viii) On 21 April 2017, a wholly-owned subsidiary of the Company, PRGPSB incorporated and subscribed for one (1) ordinary share representing 100% equity interest in PCISB, a company incorporated in Malaysia, for a total consideration of RM1.00. (ix) On 14 June 2017, a wholly-owned subsidiary of the Company, PRG Agro incorporated and subscribed for one (1) ordinary share representing 100% equity interest in Premier Food Processing Sdn. Bhd., a company incorporated in Malaysia, for a total consideration of RM1.00. 113 PRG HOLD I NGS BERHAD notes to the financial statements 31 December 2018 (continued)