PRG Holdings Berhad Annual Report 2020

Annual Report 2020 113 11. INVESTMENTS IN SUBSIDIARIES Company 2020 2019 RM’000 RM’000 Quoted equity shares - at cost 55,921 55,921 Unquoted equity shares - at cost 5,000 5,000 60,921 60,921 (a) Acquisition of subsidiaries During the financial year, the Company acquired the following subsidiaries: (i) On 14 January 2020, PRGActive Sdn. Bhd. (“PRGA”) had become a wholly-owned subsidiary of PRG Healthcare Sdn. Bhd. (“PRG Healthcare”), a wholly-owned subsidiary of the Company, upon the completion of the shares sale agreement to acquire remaining 450 ordinary shares of PRGA. Details of the acquisition are described in Note 11(e)(iv) to the financial statements. (ii) On 15 October 2020, a subsidiary of the Company, Rich Day Global Limited, acquired 8,300,000 ordinary shares representing 100% equity interest in West Bull Securities Limited (“WBSL”) (formerly known as RSI Securities Limited), a limited liability company incorporated in Hong Kong, from RSI Capital Limited for a cash consideration of HKD8,500,000 (approximately RM4,549,000). Goodwill on consolidation arising from the acquisition of WBSL of RM634,000 was accounted for using the acquisition method of accounting. The fair value of the assets acquired and the liabilities assumed from the acquisition of WBSL are as follows: Fair value Acquiree’s recognised carrying on amount acquisition RM’000 RM’000 Right-of-use assets 517 517 Intangible assets 259 259 Deferred tax assets 51 51 Trade receivables 823 823 Other receivables, deposits and prepayments 170 170 Bank balances held on behalf of clients 6,184 6,184 Cash and bank balances 2,050 2,050 Trade payables (7,004) (7,004) Other payables, deposits and accruals (83) (83) Lease liabilities (518) (518) Net identifiable assets 2,449 Add: Goodwill 634 Add: Intangible assets - fair value adjustment 1,466 Cash consideration 4,549 Less: Cash and cash equivalent of subsidiary acquired (2,050) Net cash outflow of the Group on acquisition 2,499 Notes to the Financial Statements 31 December 2020 cont’d