PRG Holdings Berhad Annual Report 2019

PRG HOLDINGS BERHAD 188 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 37. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (iv) Credit risk (continued) Credit risk concentration profile (continued) 2019 2018 RM’000 % of total RM’000 % of total By industry sectors Manufacturing 31,883 76% 14,525 22% Retail 10 * - - Healthcare 80 * - - Property development and construction 9,751 24% 52,838 78% 41,724 100% 67,363 100% * Amount is less than 1% At the end of the reporting period, approximately 35% (2018: 10%) of the Group’s trade receivables were due from five (5) (2018: seven (7)) major customers located in Malaysia, Asia Pacific (excluding Malaysia), Europe and North America. 38. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (i) On 21 December 2018, the Company announced that it had entered into a conditional Subscription and Options Agreement with Capital World Limited in relation to the proposed subscription of 265,000,000 new Capital World shares and an option to further subscribe for up to 44,000,000 new Capital World shares by PRG. Following the fulfilment of all the relevant conditions of the Agreement, the Subscription was completed on 14 March 2019. (ii) On 28 December 2018, the Company announced that the Company and its wholly-owned subsidiary, PRG Agro Sdn. Bhd. (“PRG Agro”) had entered into conditional sale and purchase agreement (“SPA”) with Alifya Forestry Sdn. Bhd. (“Alifya”) to acquire two parcels of agriculture land planted with teak trees in Kelantan. The Company, PRG Agro and Alifya had executed two supplemental letters to the SPA on 28 March 2019 and 10 June 2019 respectively to revise the purchase consideration. The total purchase consideration for the acquisition was RM89,200,000, which to be satisfied via a combination of RM59,200,000 in cash and the issuance of 40,295,500 new ordinary shares of the Company at an issue price of RM0.7445 each. On 11 September 2019, the Company, PRG Agro and Alifya had executed the third supplemental letters to the SPA. Following the fulfilment of all the relevant conditions of the SPA, the acquisition was completed on 29 November 2019.