PRG Holdings Berhad Annual Report 2019

PRG HOLDINGS BERHAD 122 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 10. INVESTMENTS IN SUBSIDIARIES (continued) (f) In the previous financial year: (i) On 9 March 2018, the Company incorporated and subscribed for one (1) ordinary share representing 100% equity interest in PRG Asset Holdings Sdn. Bhd., a company incorporated in Malaysia, for a total consideration of RM1.00. (ii) On 16 March 2018, a wholly-owned subsidiary of the Company, PRG Asset Holdings Sdn. Bhd. incorporated and subscribed for one (1) ordinary share representing 100% equity interest in PRG Land Sdn. Bhd., a company incorporated in Malaysia, for a total consideration of RM1.00. (iii) On 11 April 2018, a subsidiary of the Company, Furniweb Holdings Limited (“FHL”) incorporated and subscribed for one (1) ordinary share representing 100% equity interest in PP Retail Pte. Ltd., a private company limited by shares in Singapore under the Companies Act (Chapter 50 of the Laws of Singapore) for a total consideration of SGD1.00. (iv) On 9 April 2018, a subsidiary of the Company, FHL acquired one (1) ordinary share representing 100% equity interest in Premier Management International Limited, a limited liability company incorporated in Hong Kong on 25 November 2016 under the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), from Liew Ching Hoong for a cash consideration of HKD1.00. (v) 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.. (vi) 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 changes in a parent’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transaction (i.e. transactions with owners in their capacity as owners).