185 ANNUAL REPORT 2023 MST GOLF GROUP BERHAD Registration No: 199301009307 (264044-M) 47 6. INVESTMENT IN SUBSIDIARIES (CONT’D) Subscription of additional shares in subsidiaries On 22 December 2023, the Company subscribed an additional 117,900 new ordinary shares of IDR1.0 million each in MGI with a cash subscription of IDR117.9 billion (equivalent to approximately RM18,587,000). The Company will maintain its controlling stake of 51% in MGI. On 29 December 2023, the Company subscribed an additional 5,000,000 new ordinary shares of RM1 each in MST Golf Arena Sdn. Bhd. by capitalising the amount owed by the subsidiary company of RM5,000,000. Acquisition of minority interests in subsidiaries On 4 November 2022, the Company entered into a share sale agreement to acquire the remaining 30% equity interest in MST Golf Management Sdn. Bhd. for RM277,000 satisfied by the issuance of 676,100 new ordinary shares of the Company, increasing its ownership from 70% to 100%. On the same day, the Company entered into a share sale agreement to acquire the remaining 24% equity interest in MST Golf (Singapore) Pte. Ltd. for RM7,459,000 by issuance of 18,192,000 new ordinary shares of the Company, increasing its ownership from 76% to 100%. The Group recognised a decrease in non-controlling interest of RM10,649,000 and an increase of retained earnings of RM2,913,000. The acquisition was completed on 30 November 2022. Material accounting policy information (a)Acquisition of subsidiary with non-controlling interests The Group elects to measure the non-controlling interests in the acquiree at the proportionate share of the acquiree’s identifiable net assets at the acquisition date.
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