MKH Annual Report 2017

30. ACQUISITION OF SUBSIDIARIES (continued) In the previous financial year (a) On 4 February 2016, Amona Metro Development Sdn. Bhd. (“AMDSB”), a subsidiary of Gabung Wajib Sdn. Bhd. (“GWSB”), which is a 60% owned subsidiary of the Company acquired 84% equity interest in Temara Pekeliling Sdn. Bhd. (“TPSB”), for a cash consideration of RM5,000,000. The acquisition was completed on 18 February 2016. The fair value of the assets acquired and liabilities assumed at the effective date of acquisition are as follows: The Group 2016 RM Land held for property development (Note 17) 78,400,000 Receivables, deposits and prepayments 3,231 Cash and bank balances 485 Deferred tax liabilities (Note 18) (3,715,000) Payables and accruals (13,197,678) Loans and borrowings (50,000,000) Total identifiable net assets 11,491,038 Non-controlling interests (1,838,566) Equity attributable to owners of the parent 9,652,472 Gain on bargain purchase on acquisition included in other income (4,652,472) Total purchase consideration paid in cash 5,000,000 Cash and bank balances of subsidiary acquired (485) Acquisition of subsidiary, net of cash acquired 4,999,515 (b) On 10 June 2016, MKH Plantation Sdn. Bhd. (“MPSB”), a wholly owned subsidiary of the Company entered into a conditional Sale and Purchase Agreement to acquire 6,975 ordinary shares of IDR1,000,000 each equivalent to 75% equity interest in PT Sawit Prima Sakti (“PTSPS”), a company incorporated in the Republic of Indonesia, for a cash consideration of RM15,000,000. The process to register the sales shares with Investment Coordination Board (Badan Koordinasi Penanaman Modal or “BKPM”), public authorities and other competent authorities was ongoing at the end of the last financial year. However, the Company was able to exercise power over and gained control of PTSPS effective 10 June 2016. As a result, PTSPS became a 75% owned subsidiary of the Company. MPSB has on 9 December 2016 completed the acquisition of 75% equity interest in PTSPS. Notes to the Financial Statements For the Financial Year ended 30 September 2017 180 MKH Berhad • Annual Report 2017