PRG Holdings Berhad Annual Report 2020

40. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (continued) (iii) On 4 October 2019, the Company announced that FHL had entered into a binding term sheet with an independent third party potential purchaser on 4 October 2019 for the sale of Premier Elastic Webbing & Accessories (Vietnam) Co., Ltd. (“PEWA”), a subsidiary of FHL, principally engaged in the manufacture and sale of narrow elastic fabrics. A deposit of USD193,000 was paid by the potential purchaser to FHL and the balance consideration will be determined at a later stage by the parties. The proposed disposal is subject to, among others, the signing of a definitive capital transfer agreement, the terms of which are to be agreed by FHL and the potential purchaser. On 13 January 2020, PRG announced that PEWA, Furniweb Vietnam Shareholdings Co., Ltd. (“Furniweb Vietnam”) (an indirect wholly-owned subsidiary of FHL) and Webtex Trading Sdn. Bhd. (“Webtex”) (an indirect wholly-owned subsidiary of FHL) had on 10 January 2020 entered into a capital transfer agreement with Four K Investment Limited for the transfer of the entire registered and paid-in charter capital of USD2,100,000 of PEWA, which is contributed and held as 57.14% by Furniweb Vietnam and 42.86% by Webtex for a cash consideration of USD2,946,000 (equivalent to approximately RM12,028,000). The completion of the disposal is pending the reconciliation and settlement of intercompany loans and debts owed by PEWA. (iv) On 4 December 2019, the Company announced that PRG Asset Sdn. Bhd. (“PRG Asset”) had on even date entered into a subscription agreement with MSK Plantation Sdn. Bhd. (“MSK”) and Teh Choon Yean. MSK is principally involved in the business of mixed farming mainly on plantation estate and tropical fruit orchard management. Pursuant to the subscription agreement, PRG Asset had agreed to subscribe for 510 ordinary shares in MSK representing 51% of the equity interests in MSK at the subscription price of RM450. On 10 February 2020, 30 April 2020 and 1 September 2020, the Company announced that PRG Asset, MSK and Teh Choon Yean had mutually agreed in writing to extend the period for fulfilment of the Conditions Precedent stipulated in the subscription agreement for a further period from 5 February 2020 to 5 May 2020, 6 May 2020 to 6 August 2020 and 6 August 2020 to 31 December 2020 respectively. On 5 February 2021, the Company announced that all parties have mutually agreed in writing on 5 February 2021 to terminate the subscription agreement due to non-fulfilment of the Conditions Precedent stipulated in the subscription agreement. (v) On 13 December 2019, PRG Healthcare Sdn. Bhd. (“PRG Healthcare”), a wholly-owned subsidiary of the Company had entered into a shares sale agreement with Bernard Chin Sze Piaw (“Dr Chin”) to acquire 450 ordinary shares representing 45% of the issued share capital of PRG Active Sdn. Bhd. (“PRGA”) from Dr Chin for a purchase consideration of RM1.00. Dr Chin had on 16 December 2019 resigned as a Director in PRGA and pursuant to that, PRG Healthcare has obtained control of the PRGA and the investment in PRGA had been transferred from investment in joint venture to investments in subsidiaries. Upon completion of the shares sale agreement on 14 January 2020, PRGA has become a wholly-owned subsidiary of PRG Healthcare. (vi) On 18 December 2019, the Company announced that FHL’s wholly-owned subsidiary, Rich Day Global Limited had on 17 December 2019 proposed to acquire the entire issued share capital of West Bull Securities Limited (“WBSL”) (formerly known as RSI Securities Limited) for a total consideration of HKD8,500,000 (approximately RM4,549,000) from RSI Capital Limited (“RSI Capital”). Rich Day Global Limited had on 18 December 2019 entered into an agreement with RSI Capital (as the vendor) and Cheung Hoi Tik Eddie (as the guarantor) for the acquisition. On 15 October 2020, the acquisition of WBSL was completed and WBSL had become a wholly-owned subsidiary of the Company. Annual Report 2020 189 Notes to the Financial Statements 31 December 2020 cont’d