FGV Annual Report 2014

22 Investment in Subsidiaries (continued) (c) Incorporation and acquisitions of subsidiaries in previous financial year (continued) (ii) The effects of the acquisition of FHB was as follows: (continued) The cash outflow on acquisition was as follows: RM’000 Purchase consideration: – settled in cash 1,132,600 – loan from a significant shareholder 1,067,400 Total purchase consideration 2,200,000 Less: Cash and cash equivalents acquired (1,656,592) Net cash outflow on acquisition 543,408 The gain on fair value remeasurement of the existing interest in FHB was recorded as follows: RM’000 Fair value of 49% equity interest in FHB 2,113,958 Less: Carrying value of equity interest (1,867,356) Add: Share of FHB’s other reserves 16,678 Gain on fair value remeasurement 263,280 The negative goodwill on acquisition was as follows: RM’000 Purchase consideration for 51% equity interest 2,200,000 Fair value of existing 49% equity interest 2,113,958 4,313,958 Provisional fair value of net assets acquired (4,379,008) Negative goodwill (65,050) The Group recognised the non-current controlling interest in FHB at the non-controlling interest’s proportionate share of the recognised amounts of FHB’s identifiable net assets. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 259