10. INVESTMENTS IN SUBSIDIARIES (continued) (a) Acquisition of subsidiaries (continued) In the previous financial year, the Company acquired the following subsidiaries (continued): (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: Acquiree’s Fair value carrying recognised on amount acquisition RM’000 RM’000 Right-of-use assets 517 517 Intangible assets (Note 9) 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 (Note 9) 634 Add: Intangible assets - fair value adjustment (Note 9) 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 (b) Internal reorganisation (i) On 8 September 2020, a subsidiary of the Company, Premier Management International Limited (“PMIL”) acquired one (1) ordinary share representing 100% equity interest in PRG Land Sdn. Bhd. (“PLSB”) from PRG Asset Holdings Sdn. Bhd. for a consideration of RM1.00. (ii) On 9 April 2021, a subsidiary of the Company, PRG Property Sdn. Bhd. acquired two (2) ordinary shares representing 100% equity interest in Premier Electrify Sdn. Bhd. from the Company for a consideration of RM2.00. (iii) On 30 November 2021, a subsidiary of the Company, Furniweb Holdings Limited (“FHL”) acquired one (1) ordinary share representing 100% equity interest in PLSB from PMIL for a consideration of RM1.00. NOTES TO THE FINANCIAL STATEMENTS 121 P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 31 December 2021 (cont’d)
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