DESTINI AR 2017

5. Investment in Subsidiaries (Cont’d) (b) Acquisition of subsidiaries During the financial year (i) On 16 February 2017, Destini Prima Sdn. Bhd., a wholly-owned subsidiary of the Company, entered into a Share Sale Agreement (“SSA”) with third parties for proposed acquisition of 700,000 ordinary shares, representing 70% equity interest in Halaman Optima Sdn. Bhd. (“HOSB”) for a total cash consideration of RM5,500,000. The condition precedent for the SSA has been compiled and acquisition has been duly completed on 29 March 2017. (ii) On 28 February 2017, Destini Oil Services Sdn. Bhd., a wholly-owned subsidiary of the Company, acquired 2 ordinary shares, representing entire shareholding in Destini Downstream Sdn Bhd (“DDSB”) (formerly known as Massive Maxim Sdn. Bhd.) for cash consideration of RM2. (iii) On 3 July 2017, Destini Oil Services Sdn. Bhd., a wholly-owned subsidiary of the Company, incorporated a new wholly-owned subsidiary company at Singapore with the name DBD International Pte. Ltd (“DBD”) with the registered capital of RM6 (SGD 2). (iv) On 27 November 2017, Destini Armada Pte. Ltd., a wholly-owned subsidiary of the Company, entered into a share subscription and shareholders agreement (“SSA”) with third parties for subscription of 4,200,000 new ordinary shares in AMS Marine Pte. Ltd (“AMS”), representing 70% of the enlarged issued and paid up capital of AMS for a total cash consideration of RM3 (SGD 1). The condition precedent for the SSA has been compiled and the acquisition has been duly completed on 4 December 2017. (v) On 15 December 2017, the Company acquired 1 ordinary share in Destini Rail Sdn. Bhd. (“DRSB”) representing the 100% of the issued and paid-up share capital of DRSB for a cash consideration of RM1. In previous financial year (i) On 28 June 2016, Destini Prima Sdn. Bhd., a wholly-owned subsidiary of the Company, transferred its entire shareholdings in Technofibre International Sdn. Bhd. to Destini Armada Sdn. Bhd. at total cash consideration of RM1. (ii) On 4 January 2016, TF Corp Pte. Ltd., a wholly-owned subsidiary of the Company, subscribed for 1,020,000 ordinary shares of SAR 1 each, representing the 51% shareholding in TF Corp Saudi Arabia Co. Ltd. (“TFC”) at a subscription price of SAR1 each share for a total cash consideration of RM1,126,839 (SAR1,020,000). (iii) On 5 September 2016, TFC subscribed for 1,500 ordinary shares of GBP 1 each, representing the 60% shareholding in Destini Marine Safety Solutions Ltd (“DMSS”) (formerly known as Imes Marine Safety Systems Ltd) at a subscription price of GBP 50 each share for a total cash consideration of RM401,708 (GBP75,000). (iv) On 8 December 2016, Destini Shipbuilding And Engineering Sdn. Bhd., a wholly-owned subsidiary of the Company, acquired 382,500 ordinary shares of RM1 each, representing 51% shareholding in THHE Destini Sdn. Bhd. (“THHE”) for a total cash consideration of RM382,500. 128 DESTINI BERHAD Financial Statements Notes to the 31 December 2017