Tropicana Corporation Berhad Annual Report 2020

18. INVESTMENTS IN SUBSIDIARIES (CONT'D.) (c) Acquisition of Acquiree Companies (cont'd.) 2019 RM'000 Fair value of net identifiable assets 776,438 Less: Non-controlling interest measured at proportionate share of the acquiree's identifiable net assets (237,701) Group's interest in fair value of net identifiable assets 538,737 Gain on a bargain purchase (Note 6) (321,346) Total purchase consideration 217,391 Total purchase consideration is as follows: 2019 RM'000 127,043,000 ICPS issued at RM1.20 each 152,452 Deferred payment 64,939 Total purchase consideration 217,391 The effect of the acquisition on cash flow is as follows: 2019 RM'000 Cash and cash equivalents of subsidiaries acquired 14,877 Less: consideration settled in cash – Net cash inflow on acquisition 14,877 19. INVESTMENT IN AN ASSOCIATE Group 2020 2019 RM'000 RM'000 Unquoted shares, at costs 151,552 115,102 Amount due from an associate – 37,177 Share of post-acquisition results and reserves 4,106 (1,940) Unrealised profit arising from sale of land to associate (59,774) (59,774) 95,884 90,565 The amount due from an associate represents outstanding amount arising from the Group's proportionate share in the advances and working capital to the associate. The amount due from an associate is unsecured, non-interest bearing and is not repayable within the next twelve (12) months. The Group views these advances as part of the Group's investment in the associate. Details of the associate are as follows: Country of Principal Equity interest held (%) Name of associate incorporation activity 2020 2019 Agile Tropicana Development Sdn Bhd Malaysia Property development 30 30 (" ATROP ") The associate has been accounted for using the equity method of accounting. During the financial year, ATROP issued 121,500,000 (2019: nil) of redeemable preference shares series (" RPS ") of RM1.00 each. The Group subscribed for 30% of the RPS by way of capitalisation of amount due from ATROP. The summarised financial information of the associate is as follows: Group 2020 2019 RM'000 RM'000 Non-current assets 4,775 7,463 Current assets 828,131 649,263 Non-current liabilities (259,388) (259,884) Current liabilities (54,658) (19,637) Net assets 518,860 377,205 Revenue 132,443 74,825 Profit before tax 20,153 2,730 Profit after tax, representing total comprehensive income 20,153 2,730 Group's share of results 6,046 819 The associate had no contingent liabilities or capital commitments as at 31 December 2020 or 31 December 2019. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 ANNUAL REPORT 2020 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 240 241