2019 UEM Edgenta Annual Report

235 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 34. CAPITAL AND OTHER MERGER RESERVE The acquisitions of Opus Group Berhad (“Opus”) and Edgenta PROPEL Berhad in prior years, which was accounted for using the pooling of interest method, gave rise to the following: (a) Capital reserve This reserve represents the excess of issue price of the Company’s shares over the par value in accordance with Section 60(4)(a) of the Companies Act, 1965. This reserve had been partially set off against the merger deficit reserve in prior years for the purpose of presentation in the financial statements of the Group. (b) Other merger reserve This reserve represents the excess of fair value of the Company’s shares at the acquisition date over the issue price. This reserve had been fully set off against the merger deficit reserve for the purpose of presentation in the financial statements of the Group. 35. OTHER RESERVES Put option reserve RM’000 (Note a) Statutory reserve RM’000 (Note b) Foreign currency translation reserve RM’000 (Note c) Other reserve RM’000 (Note d) Total RM’000 Group At 1 January 2018 (14,635) 279 (7,610) 9,163 (12,803) Foreign currency translation - - (457) - (457) Put option granted to non-controlling interests of a subsidiary 12,242 - - - 12,242 At 31 December 2018 (2,393) 279 (8,067) 9,163 (1,018) Foreign currency translation - - 1,457 - 1,457 Put option granted to non-controlling interests of a subsidiary 2,976 - - - 2,976 At 31 December 2019 583 279 (6,610) 9,163 3,415 (a) Put option reserve This relates to the put option issued to the non-controlling interests over the shares of a subsidiary of the Group. For the purpose of presentation in the financial statements, the put option reserve is shown net of the related non-controlling interests at each reporting date as if it was acquired at that date. On 14 November 2019, the non-controlling interest of EGT has issued a notice to exercise the put option granted on its 20% shareholding in the entity. Further information is disclosed in Note 17(f).