PRG Holdings Berhad Annual Report 2018

9. INVESTMENTS IN SUBSIDIARIES (continued) (e) In the previous financial year (continued): (x) On 7 July 2017, a wholly-owned subsidiary of the Company, PRGCSB incorporated and subscribed for one (1) ordinary share representing 100% equity interest in Premier Mirach Sdn. Bhd. (“PMSB”), a company incorporated in Malaysia, for a total consideration of RM1.00. (xi) On 31 July 2017, a wholly-owned subsidiary of the Company, PRGPSB incorporated and subscribed for one (1) ordinary share representing 100% equity interest in Premier Aspirasi Development Sdn. Bhd. (“PADSB”), a company incorporated in Malaysia, for a total consideration of RM1.00. The one (1) ordinary share was transferred to PJPC for a total consideration of RM1.00 on 2 October 2017. (xii) On 10 August 2017, the wholly-owned subsidiaries of the Company, PRGPSB and PADSB have jointly incorporated and subscribed for ten (10) ordinary shares representing 100% equity interest in Premier Aspirasi (Batu Gajah) Sdn. Bhd. (“PABG”), a company incorporated in Malaysia, with shareholdings of 90% and 10% respectively. (xiii) On 26 July 2017, Furniweb (Vietnam) Shareholding Company (“FVSC”), a wholly-owned subsidiary of the Group, Scoot Filoot Pty. Ltd. (“Scoot”) and Shann Australia Pty. Ltd. (“Shann”) entered into a share purchase agreement with Lubra Beteiligungsgesellschaft mbH (“Lubra”) to transfer 14.24%, 2.09% and 1.04% equity interest in Furnitech Components (Vietnam) Co., Ltd. (“Furnitech”) to Lubra at a consideration of USD9,179 (approximately RM39,000), USD1,347 and USD668 respectively. Following the completion of the above transfers, Lubra further injected USD1,310,000 to Furnitech. The charter capital of Furnitech was then increased from USD2,600,000 to USD3,910,000. The above transactions were completed on 14 September 2017. By virtue of the above transactions, the effective equity interest in Furnitech was diluted and reduced to 45.06%. Consequently, Furnitech ceased to be a subsidiary of the Group and became an associate of the Group. Effects of the partial disposal of Furnitech are as follows: Carrying amounts of the identifiable assets and liabilities of Furnitech as at the date of partial disposal are as follows: 2017 RM’000 Property, plant and equipment 3,651 Inventories 3,253 Trade and other receivables 1,165 Deposits placed with financial institutions with original maturity of more than three (3) months 27 Cash and bank balances 4,707 Total identifiable assets 12,803 Trade and other payables (11,350) Borrowings (2,568) Total identifiable net liabilities (1,115) Effects of partial disposal of Furnitech on cash flows are as follows: 2017 RM’000 Disposal consideration for the subsidiary disposed of, in cash 39 Less: Cash and cash equivalents disposed of (4,707) Net cash outflow from partial disposal of Furnitech (4,668) 2018 A N N U A L R E P O R T 114 notes to the financial statements 31 December 2018 (continued)