FGV Audited Financial Statements 2019

152 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 25 INTERESTS IN ASSOCIATES (CONTINUED) Set out below are details of the associates of the Group as at 31 December 2019. The associates as listed below have share capital consisting of ordinary and RCPS shares, which are held directly and indirectly by the Group, have financial years ending 31 December, unless otherwise stated, and are measured by way of equity accounting. Name of company Place of business/ country of incorporation Group’s effective interest Nature of business 2019 % 2018 % Indirect associates Associates of FHB Nilai Education Sdn. Bhd. (Note a) Malaysia 30.0 30.0 (i) FKW Global Commodities (PVT) Limited Malaysia 30.0 30.0 (ii) Paragon Yield Sdn. Bhd. (Note b) Malaysia - 30.0 (iii) Associate of PUP Malacca Plantation Sdn. Bhd. Malaysia 34.33 34.33 (iv) (i) Management of an educational institute (ii) Commodity trading (iii) Investment holding (iv) Investment holding and cultivation of oil palm Note (a) During the financial year, the Board of Director of the Company had approved a proposed divestment of the 30% equity interest in Nilai Education Sdn. Bhd.(“NESB”), an associate of the Group. Consequently, the interest in NESB amounting to RM26,903,000 has been classified as asset held for sale in the statements of financial position as the criteria under MFRS 5 “Non-current Assets Held For Sale And Discontinued Operations” has been met (Note 38). Note (b) During the financial year, Paragon Yield Sdn. Bhd. was disposed for a total consideration of RM29,000,000, resulting in a loss on disposal amounting to RM1,413,000. Note (c) In previous financial year, Taiko Clay Chemicals Sdn. Bhd. was disposed for a total consideration of RM145,000,000, resulting in a loss on disposal amounting to RM18,494,000. There are no material contingent liabilities relating to the Group’s interests in the associates. The associate companies above are private companies and have no quoted market price available for their shares.