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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
11. INVESTMENTS IN SUBSIDIARIES (CONT’D)
In the previous financial year:-
(i)
The Company acquired 2,135,610 ordinary shares of NT$10 each representing 6.46% of the issued and paid-up
share capital of AGTC for a total cash consideration of NT$42,192,117 (including incidental costs) (equivalent to
RM5,103,100). Following the acquisition, the Group’s interest in AGTC increased from 57.92% to 64.38%. The
carrying amount of AGTC’s net assets shared by the Group on the date of the acquisition was RM55,380,737. The
Group recognised a decrease in non-controlling interests of RM5,909,957 and an increase in retained earnings of
RM806,858.
(ii) The Company’s wholly-owned subsidiary, FSPL, had on 25 August 2015 entered into a Sale and Purchase
Agreement with Giga Group Pte. Ltd., to acquire the remaining 49% of the entire issued and paid-up share capital
in FPPL for a cash consideration of S$585,060 (equivalent to RM1,758,924). Following the completion of the
acquisition on 28 August 2015, FPPL became a wholly-owned subsidiary of FSPL. The carrying amount of FPPL’s
net assets shared by the Group on the date of the acquisition was RM1,956,027. The Group recognised a decrease
in non-controlling interests of RM1,879,320 and an increase in retained earnings of RM120,395.
The following summarises the effect of changes in equity interest in AGTC and FPPL that is attributable to owners of
the Company:
AGTC
FPPL
Total
2015
2015
2015
RM
RM
RM
Equity interest at 1 January 2015
40,475,049
2,117,339
42,592,388
Effect of increase in Company’s ownership interest
5,909,957
1,879,320
7,789,277
Share of comprehensive income
14,183,937
(317,151)
13,866,786
Equity interest at 31 December 2015
60,568,943
3,679,508
64,248,451
(iii) The Company and its subsidiary, AGIC had on 19 August 2015 entered into a Sale and Purchase Agreement with
MIC-Tech Ventures Asia Pacific Inc. to dispose of 60% of the issued and paid-up share capital of FMIC comprising
10,903,805 ordinary shares of HKD1.00 each for a cash consideration of USD90,000. The disposal was completed
on 30 September 2015, whereupon FMIC ceased to be a subsidiary of the Group.
The details of the assets, liabilities and cash flows arising from the disposal of FMIC were as follows:
The Group
2015
RM
Other receivables
515,491
Cash and cash equivalents
1,145,245
Trade and other payables
(20,266)
Less: Non-controlling interests
589,373
Group’s interest in fair value of net identifiable assets
2,229,843
Loss on disposal of subsidiary
(1,870,011)
359,832
Less: Cash and cash equivalents in subsidiary disposed
(1,145,245)
Net cash outflow on disposal
(785,413)
Notes To The Financial Statements
(cont’d)