FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 255 22 INVESTMENT IN SUBSIDIARIES (Cont’d.) (d) Incorporation, acquisition and dissolution of subsidiaries in previous financial year (Cont’d.) ® On 20 June 2012, Twin Rivers Technologies Holdings Inc (“TRT Holdings”) had transferred 100% equity interest representing 6,882 common shares in Twin Rivers Technologies Holdings Enterprises de Transformation de Graines Oleagineuses Inc (“TRT Holdings ETGO Inc”) to FGVNA for a cash consideration of CAD1.00. ¥ On 20 June 2012, Twin Rivers Technologies US Inc (“TRT US”) had merged with and into TRT Holdings. Upon completion of the merger, the shareholdings of FGVNA in TRT Holdings, representing 117,646 Class A Common Stock shares and 80,000 Class B common stock was converted to a single class common stock. Ω On 25 September 2012, the Company acquired 100%equity interest in Rias Simfoni Sdn. Bhd., a company incorporated inMalaysia, for a cash consideration of RM2. On 10 October 2012, the company changed its name to Felda Global Ventures Research & Development Sdn. Bhd. (“FGV R&D”). There is no financial impact arising as the company was dormant. € In the previous financial year, Felda Global Ventures Kalimantan Sdn. Bhd. (“FGVK”), a subsidiary of the Company, entered into an agreement to acquire a 95% interest in PT. Citra Niaga Perkasa from Joko Sintrajaya for a total consideration of RM16,500,000, to be completed upon the receipt of relevant regulatory approvals in Indonesia. The acquisition was completed on 27 February 2012. The effects of the acquisition of PT. Citra Niaga Perkasa can be summarised below: Carrying value/ Fair value RM’000 Intangible assets (Note 21) 15,837 Cash and cash equivalents 16 Receivables 767 Payables (85) Total net assets acquired 16,535 Non-controlling interests (35) Fair value of net assets acquired (less non-controlling interest) 16,500 Purchase consideration (16,500) Goodwill on acquisition - RM’000 The cash outflow on acquisition is as follows: Purchase consideration 16,500 Less: Deferred consideration (825) Less: Cash and cash equivalents of subsidiary acquired (16) Net cash outflow of the Group 15,659 Less: Deposit paid in 2011 (5,775) Acquisition of subsidiary, net of cash inflows 9,884 The effect of the acquisition of PT. Citra Niaga Perkasa on the financial results of the Group during the financial year, and had the acquisition taken effect at the beginning of the financial year is shown below: RM’000 Operating expenses (1,219) Loss after taxation (1,219)