PRG Holdings Berhad Annual Report 2020

PRG HOLDINGS BERHAD 116 11. INVESTMENTS IN SUBSIDIARIES (continued) (d) Deemed disposal of entire equity interest in Premier Elastic Webbing & Accessories (Vietnam) Co., Ltd. (“PEWA”) (continued) The gain on disposal of PEWA during the financial year is as follows: RM’000 Net identifiable assets 8,721 Realisation of exchange translation reserve 1,393 Less: Disposal consideration (12,016) Gain on disposal (1,902) The analysis of the net cash flow in respect of the disposal of PEWA is as follows: RM’000 Total disposal consideration received 12,016 Less: Consideration by cash on payment schedule (2,403) Less: Cash and cash equivalents disposed of (Note 28) (7,231) Net cash inflow of the Group on disposal 2,382 (e) In the previous financial year: (i) On 8 April 2019, a subsidiary of the Company, Furniweb Holdings Limited (“FHL”) acquired 50,000 ordinary shares representing 100% equity interest in Delightful Grace Holdings Limited (“DGHL”), a limited liability company incorporated in British Virgin Islands, from Au Yeung Yiu Chung for a consideration of HKD1.00. (ii) On 25 April 2019, a subsidiary of the Company, DGHL acquired one (1) ordinary share representing 100% equity interest in Fly High Finance Limited, a limited liability company incorporated in Hong Kong under the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), from Au Yeung Yiu Chung for a consideration of HKD1.00. (iii) On 28 June 2019, a subsidiary of the Company, FHL acquired 50,000 ordinary shares representing 100% equity interest in Meinaide Holdings Group Limited (“MHGL”), a limited liability company incorporated in British Virgin Islands, from Triumph Star Global Limited for a consideration of HKD140,000,000 (approximately RM80,185,000) by way of 56,000,000 Consideration Shares of FHL at HKD2.50 per Consideration Share. Upon completion of the acquisition, the wholly-owned subsidiaries of MHGL, comprising Meinaide Technology Development Limited, Perfect Moral Ventures Limited and Jiangmenshi Meinaide Technology Company Limited, had become subsidiaries of the Company. Goodwill on consolidation arising from the acquisition of MHGL of RM62,118,000 was accounted for using the acquisition method of accounting. Notes to the Financial Statements 31 December 2020 cont’d