DESTINI Annual Report 2018

5. Investment in Subsidiaries (Cont’d) (b) Acquisition of subsidiaries During the financial year On 5 June 2018, the Company incorporated a new wholly-owned subsidiary company at Malaysia with the name Destini Empire Properties Sdn. Bhd. (“DEPSB”) with the registered capital of RM1. In previous 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 at Singapore with the name Vanguarde Marine Engine Pte. Ltd. (formerly known as DBD International Pte. Ltd) (“VMEPL”) 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) On15December 2017, theCompany acquired1ordinary share inDestini Rail Sdn. Bhd. (“DRSB”) representing the 100% of the issued and paid-up share capital of DRSB for a cash consideration of RM1. The following summarises the major classes of consideration transferred, and the recognised amounts of assets acquired and liabilities assumed at the acquisition date: Fair value of consideration transferred NOTES TO THE FINANCIAL STATEMENTS 2017 RM Cash consideration paid 5,500,012 DESTINI BERHAD ANNUAL REPORT 2018 148