PRG Holdings Berhad Annual Report 2019

PRG HOLDINGS BERHAD 118 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 10. INVESTMENTS IN SUBSIDIARIES Company 2019 2018 RM’000 RM’000 Quoted equity shares - at cost 55,921 58,510 Unquoted equity shares - at cost 5,000 5,250 60,921 63,760 (a) Acquisition of subsidiaries During the financial year, the Company acquired the following subsidiaries: (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, 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.