PRG Holdings Berhad Annual Report 2020

PRG HOLDINGS BERHAD 114 11. INVESTMENTS IN SUBSIDIARIES (continued) (b) Internal reorganisation On 8 September 2020, a subsidiary of the Company, Premier Management International Limited acquired one (1) ordinary share representing 100% equity interest in PRG Land Sdn. Bhd. from PRG Asset Holdings Sdn. Bhd. for a consideration of RM1.00. (c) Disposal of 60% equity interest in Premier De Muara Sdn. Bhd. (“PDMSB”) On 26 July 2019, the Company with its subsidiaries, PRG Property Sdn. Bhd. and PDMSB had entered into a conditional share sale agreement with Liveintent Sdn. Bhd. for the disposal of 150,000 ordinary shares representing its entire 60% equity interest in PDMSB by PRG Property Sdn. Bhd. to Liveintent Sdn. Bhd.. Details of the disposal are described in Note 40(ii) to the financial statements. Upon the completion of the share sale agreement on 2 July 2020, PDMSB ceased to be a subsidiary of the Group. The carrying amounts of the identifiable assets and liabilities of PDMSB as at the date of disposal are as follows: RM’000 Property, plant and equipment 186 Right-of-use assets 229 Intangible assets 1 Deferred tax assets 2,818 Inventories 185,815 Trade and other receivables 42,762 Contract assets 14,403 Current tax assets 606 Restricted cash 200 Cash and bank balances 61 Bank overdraft (7,137) Trade and other payables (170,241) Contract liabilities (66,917) Lease liabilities (311) Net identifiable assets 2,475 The gain on disposal of PDMSB during the financial year is as follows: RM’000 Net identifiable assets 2,475 Non-controlling interests (990) Total net identifiable assets 1,485 Less: Fair value of disposal consideration (6,911) Gain on disposal (5,426) Notes to the Financial Statements 31 December 2020 cont’d