FGV Annual Report 2012

75 F i n a n c i a l S t a t e m e n t s 2 0 1 2 P e n y a t a K e w a n g a n 21 INVESTMENT IN SUBSIDIARIES (continued) (d) Incorporation, accretion and dilution of interest in subsidiaries in the previous financial year (continued) ^ In February 2011, the Board of Directors of the Company approved a proposed corporate reorganisation scheme to restructure and to list the sugar business of the Group on the Main Market of Bursa Malaysia Securities Berhad. The corporate reorganisation includes the following: (continued) (iv) On 28 June 2011, MSMH was listed after undertaking a public offering through: (continued) The effect of the corporate reorganisation scheme to the Group is summarised as follows: RM’000 Dilution of equity interest in MSM from 100% to 80% (Refer (i)) 80,525 Dilution of equity interest in the sugar cane cultivation operations from 100% to 82% (Refer (iii)(a)) (19,084) Accretion of equity interest in MSM from 80% to 82% Refer (iii)(b)) 14,956 Accretion of equity interest in KGFP from 74.5% to 82% (Refer (iii)(b)) 27,054 Accretion of equity interest in MSMH from 82% to 85% (Refer (iii)(c)) (27,759) Dilution of equity interest in MSMH from 85% to 51% (Refer (iv)) 280,550 Impact of dilution of interest 356,242 Following the completion of the listing, the Group owns a 51% effective equity interest in MSMH, a public listed company with 100% equity interest in MSM and KGFP, including the sugar cane cultivation business of FGVP within KGFP. α On 30 September 2011, a subsidiary of the Company, Felda Global Ventures North America Sdn Bhd (“FGVNA”) acquired the remaining 3% equity interest from the existing shareholder of Twin Rivers Technologies Holdings, Inc (“TRTH”), which comprised 3,529 ordinary shares for a cash consideration of RM3,827,000. Consequently, the Company’s effective interest in TRTH increased from 97% to 100%. The acquisition of the remaining equity interest in TRTH is regarded as a transaction with non-controlling interest, and the loss of RM7,594,000 arising from the accretion of equity interest has been recognised in retained earnings of the Group.