PRG Holdings Berhad Annual Report 2017

• PRG HOLDINGS BERHAD 108 9. INVESTMENTS IN SUBSIDIARIES (CONT’D) (a) Incorporation of subsidiaries (cont’d) (i) During the financial year, the Company incorporated the following subsidiaries (cont’d): • On 8 August 2017, the Company incorporated and subscribed for one (1) ordinary share representing 100% equity interest in Premier JPC Sdn. Bhd. (“PJPC”), a company incorporated in Malaysia, for a total consideration of RM1.00. • On 22 August 2017, the Company incorporated and subscribed for one (1) ordinary share representing 100% equity interest in PRG Management Services Sdn. Bhd., a company incorporated in Malaysia, for a total consideration of RM1.00. (ii) On 21 April 2017, a wholly-owned subsidiary of the Company, PRG Property Sdn. Bhd. (“PRGPSB”) (formerly known as Premier Gesture Sdn. Bhd.) incorporated and subscribed for one (1) ordinary share representing 100% equity interest in Premier Construction International Sdn. Bhd., a company incorporated in Malaysia, for a total consideration of RM1.00. (iii) On 14 June 2017, a wholly-owned subsidiary of the Company, PRG Agro incorporated and subscribed for one (1) ordinary share representing 100% equity interest in Premier Food Processing Sdn. Bhd., a company incorporated in Malaysia, for a total consideration of RM1.00. (iv) On 7 July 2017, a wholly-owned subsidiary of the Company, PRGCSB incorporated and subscribed for one (1) ordinary share representing 100% equity interest in Premier Mirach Sdn. Bhd. (“PMSB”), a company incorporated in Malaysia, for a total consideration of RM1.00. (v) On 31 July 2017, a wholly-owned subsidiary of the Company, PRGPSB incorporated and subscribed for one (1) ordinary share representing 100% equity interest in Premier Aspirasi Development Sdn. Bhd. (“PADSB”), a company incorporated in Malaysia, for a total consideration of RM1.00. The one (1) ordinary share was transferred to PJPC for a total consideration of RM1.00 on 2 October 2017. (vi) On 10 August 2017, the wholly-owned subsidiaries of the Company, PRGPSB and PADSB have jointly incorporated and subscribed for ten (10) ordinary shares representing 100% equity interest in Premier Aspirasi (Batu Gajah) Sdn. Bhd. (“PABG”), a company incorporated in Malaysia, with shareholdings of 90% and 10% respectively. (b) Disposals of subsidiaries (i) On 26 July 2017, Furniweb (Vietnam) Shareholding Company (“FVSC”), a wholly-owned subsidiary of the Group, Scoot Filoot Pty Ltd (“Scoot”) and Shann Australia Pty Ltd (“Shann”) entered into a share purchase agreement with Lubra Beteiligungsgesellschaft mbH (“Lubra”) to transfer 14.24%, 2.09% and 1.04% equity interest in Furnitech Components (Vietnam) Co., Ltd. (“Furnitech”) to Lubra at a consideration of USD9,179 (approximately RM39,000), USD1,347 and USD668 respectively. Following the completion of the above transfers, Lubra further injected USD1,310,000 to Furnitech. The charter capital of Furnitech was then increased from USD2,600,000 to USD3,910,000. The above transactions were completed on 14 September 2017. By virtue of the above transactions, the effective equity interest in Furnitech was diluted and reduced to 45.06%. Consequently, Furnitech ceased to be a subsidiary of the Group and became an associate of the Group. N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 1 D E C E M B E R 2 0 1 7 ( c o n t ’ d )