Tropicana Corporation Berhad Annual Report 2019

18. INVESTMENTS IN SUBSIDIARIES (CONT’D.) (a) Group restructuring During the financial year, the Group and the Company executed and completed an internal Group restructuring scheme involving the following: (i) The Company injected total additional working capital of RM354,600 in Tropicana Investment Consulting Pte. Ltd., a wholly-owned subsidiary of the Company. (ii) The Company completed the capitalisation of debts amounting to RM57,666,378 owed by several subsidiaries to the Company by way of issuance of Redeemable Non-Cumulative Preference Shares (“ RNCPS ”) issued by these subsidiaries at an issuance price of RM1 each. (iii) On 17 January 2019, the Company acquired the balance of 51 ordinary shares in Tropicana Urban Homes Sdn Bhd (“ TUHSB ”) for a total cash consideration of RM51. Following the completion of the acquisition, TUHSB has become a wholly-owned subsidiary of the Company. (iv) On 18 February 2019, Tropicana Mentari Development Sdn Bhd (“ TMDSB ”), a wholly-owned subsidiary of the Company, acquired 1 ordinary share of Urban Discovery Sdn Bhd (“ Urban Discovery ”) representing 100% of the total paid-up share capital for a total cash consideration of RM1. Following the completion of the acquisition, Urban Discovery has become a wholly-owned subsidiary of TMDSB, which in turn is an indirect wholly-owned subsidiary of the Company. (v) On 26 February 2019, Tropicana Marketplace Sdn Bhd (“ TMPSB ”), a wholly-owned subsidiary of the Company, registered a wholly foreign owned enterprise by the name of Marketplace (Hong Kong) Limited (formerly known as Tropicana Marketplace (Hong Kong) Limited) as a private limited liability company in Hong Kong, the People’s Republic of China, with a total amount of investment of Hong Kong Dollar (“ HKD ”) 1 and registered capital of HKD1. (vi) On 27 February 2019, the Company completed a capital reduction exercise to reduce its investment in a subsidiary, Tropicana Development (Penang) Sdn Bhd by cancelling 59,667,940 of Class B Ordinary Shares and 96,937,333 of RNCPS, all of which are held by the Company amounting to RM156,605,273. (vii) On 4 March 2019, the Company acquired 1 ordinary share of Pixelcloud Sdn Bhd (“ Pixelcloud ”) representing 100% of the total paid-up share capital for a total cash consideration of RM1. Following the completion of the acquisition, Pixelcloud has become a wholly-owned subsidiary of the Company. (viii) On 16 April 2019, BK Utilities Sdn Bhd (“ BK Utilities ”) was incorporated as a private company limited by shares in Malaysia under the Companies Act 2016. The entire issued share capital of BK Utilities of RM1 comprising 1 ordinary share is held by the Company. (ix) On 3 June 2019, the Company acquired 1 ordinary share of Marvelscape Sdn Bhd (“ MSSB ”) representing 100% of the total paid-up share capital for a total cash consideration of RM1. Following the completion of the acquisition, MSSB has become a wholly-owned subsidiary of the Company. (x) On 14 June 2019, Tropicana KK City Sdn Bhd had been struck off from the Register of the Companies Commission of Malaysia and dissolved following the publication of the notice of striking off pursuant to Section 551(3) of the Companies Act 2016 in the Gazette. (xi) On 14 June 2019, the Company has fully redeemed the Redeemable Convertible Unsecured Loan Stocks issued by Tropicana Coliseum (Ipoh) Sdn Bhd (“ TCISB ”) for RM11,919,271 by offsetting of amounts owing by the Company to TCISB. (xii) On 2 July 2019, the Company acquired 1 ordinary share each of Mighty Valley Sdn Bhd (“ MVSB ”) and Megaxis Sdn Bhd (“ MXSB ”). Each of the acquisitions representing 100% of the total paid-up share capital for a cash consideration of RM1 each. Following the completion of the acquisition, MVSB and MXSB have become wholly-owned subsidiaries of the Company. For the financial year ended 31 December 2019 Notes to the Financial Statements Tropicana Corporation Berhad Annual Report 2019 pg 190 About Tropicana Our Strategic Performance Our Leadership