Frontken Berhad Annual Report 2016

Frontken Corporation Berhad (651020-T)

ANNUAL REPORT

2016

11. INVESTMENTS IN SUBSIDIARIES (CONT’D)

During the financial year:-

(i)

In the month of February 2016, the Company acquired 1,135,575 ordinary shares of NT$10 each representing

3.33% of the issued and paid-up share capital of AGTC for a total cash consideration of NT$19,514,250 (including

incidental costs) (equivalent to RM2,438,473). Following the acquisition, the Group’s interest in AGTC increased

from 64.38% to 67.71%. The carrying amount of AGTC’s net assets shared by the Group on the date of the

acquisition was RM56,664,383. The Group recognised a decrease in non-controlling interests of RM2,953,962 and

an increase in retained earnings of RM515,489.

(ii) In the month of February 2016, the Company’s wholly-owned subsidiary, FMSB, acquired the remaining 39.93%

of the entire issued and paid-up share capital in FPSB for a cash consideration of RM2. Following the acquisition,

FPSB became a wholly-owned subsidiary of FMSB. The carrying amount of FPSB’s net liabilities shared by the

Group on the date of the acquisition was RM2,220,473. The Group recognised an increase in non-controlling

interests of RM498,348 and a decrease in retained earnings of RM498,350.

(iii) In the month of June 2016, the Company acquired 1,250,267 ordinary shares of NT$10 each representing 3.67%

of the issued and paid-up share capital of AGTC for a total cash consideration of NT$26,880,741 (equivalent to

RM3,434,183). Following the acquisition, the Group’s interest in AGTC increased from 67.71% to 71.38%. The

carrying amount of AGTC’s net assets shared by the Group on the date of the acquisition was RM65,984,121. The

Group recognised a decrease in non-controlling interests of RM3,442,215 and an increase in retained earnings of

RM8,033.

(iv) In the month of July 2016, the Company acquired 615,314 ordinary shares of NT$10 each representing 1.81%

of the issued and paid-up share capital of AGTC for a total cash consideration of NT$11,937,092 (equivalent to

RM1,493,567). Following the acquisition, the Group’s interest in AGTC increased from 71.38% to 73.19%. The

carrying amount of AGTC’s net assets shared the Group on the date of the acquisition was RM72,165,814. The

Group recognised a decrease in non-controlling interests of RM1,765,748 and an increase in retained earnings of

RM272,180.

(v) In the month of October 2016, the Company acquired 11,659 ordinary shares of NT$10 each representing 0.03%

of the issued and paid-up share capital of AGTC for a total cash consideration of NT$254,166 (equivalent to

RM32,919). Following the acquisition, the Group’s interest in AGTC increased from 73.19% to 73.22%. The

carrying amount of AGTC’s net assets shared the Group on the date of the acquisition was RM78,959,707. The

Group recognised a decrease in non-controlling interests of RM31,273 and a decrease in retained earnings of

RM1,646.

The following summarises the effect of changes in equity interest in AGTC and FPSB that is attributable to owners of

the Company:

AGTC

FPSB

Total

2016

Equity interest at 1 January 2016

60,568,943

(2,219,163)

58,349,780

Effect of increase in Company’s ownership interest

8,193,198

(498,348)

7,694,850

Share of comprehensive income

16,223,450

12,552

16,236,002

Equity interest at 31 December 2016

84,985,591

(2,704,959)

82,280,632

(vi) On 27 December 2016, the Company received the approval from Taiwan Authority for dissolution of its wholly-

owned subsidiary, FTC. FTC was incorporated for the purpose of acquiring and holding the Group’s 23.11% share

investment in AGTC. On 30 December 2016, FTC has transferred all its AGTC shares to the Company and all FTC’s

assets and liabilities were assigned to the Company.

Notes To The Financial Statements

(cont’d)