PRG Holdings Berhad Annual Report 2018

9. INVESTMENTS IN SUBSIDIARIES (continued) (e) In the previous financial year (continued): (xvii) Internal reorganisations and listing of manufacturing division • On 28 April 2017 and 21 September 2017, the Group undertook internal reorganisations for the manufacturing division to rationalise the Group’s structure in contemplation of the listing of FHL on the GEM of the Stock Exchange of Hong Kong Limited. Details of the reorganisations are set out in the respective announcements dated 28 April 2017 and 21 September 2017. Reversal of impairment losses on investments in subsidiaries amounting to RM2,545,000 has been recognised in the previous financial year as a result of the internal reorganisations. The internal reorganisations also resulted in a net gain on disposals of subsidiaries of RM5,235,000 to the Company. • During the previous financial year, FHL issued 126,000,000 new ordinary shares with par value of HKD0.10 each, by way of public offer and placing, at a price of HKD0.50 per share (hereinafter refer as “Share Offer”). Pursuant to the written resolutions of the sole shareholder passed on 20 September 2017, conditional upon the share premium account of FHL being credited with the proceeds of the Share Offer, FHL increased its share capital by HKD35,800,000 (approximately RM19,382,000) vide the allotment of an additional 358,000,000 new ordinary shares to the Company by way of capitalisation of the sum of HKD35,800,000 standing to the credit of the share premium account of FHL (hereinafter refer as “Capitalisation Issue”). The above Share Offer constitute in aggregate 25% of the enlarged share capital in FHL immediately after the completion of the Share Offer and Capitalisation Issue. On 16 October 2017, FHL had completed the listing of and quotation for 504,000,000 ordinary shares of HKD0.10 each on the GEM of the Stock Exchange of Hong Kong Limited. Consequently, FHL became a 75% owned subsidiary of the Group. • On 22 December 2017, the Group undertook an internal reorganisation for the property division. PRG Healthcare Sdn. Bhd. (“PRG Healthcare”) disposed its entire equity interest in Premier Electrify Sdn. Bhd. (“PESB”) to PRG Agro. • During the financial year, FVSC has declared a dividend of RM13,132,000 and it has been converted to share capital. The transaction did not have any effect in the effective equity interest held by the Group. 2018 A N N U A L R E P O R T 116 notes to the financial statements 31 December 2018 (continued)