FGV Annual Report 2015

343 WHO WE ARE & WHAT WE DO OUR STRATEGIC INTENT & PERFORMANCE HOWWE ARE GOVERNED CREATING SUSTAINABLE VALUE OUR NUMBERS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING Notes to the Financial Statements For The Financial Year Ended 31 December 2015 ADDRESSING OUR RISKS & OPPORTUNITIES Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 56 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONTINUED) (d) On 31 March 2015, the Company acquired the entire equity interest of Felda Iffco South China Ltd (“FISC”) from Felda Iffco Sdn. Bhd., a joint venture of FGVD for a total purchase consideration of RMB320.00 million (RM181.34 million). FISC has changed its business name to FGV China Oils Ltd (“FGVCO”) with effect from 22 August 2015. On 28 August 2015, the Company entered into a sales and purchase agreement (“SPA”) with Hua Neng Pte Ltd to dispose 49% of the issued and paid-up share capital of FGVCO for a total consideration of RMB165 million (RM109 million). The proposed disposal is expected to be completed in 2016. (e) On 8 June 2015, Pontian United Plantations Berhad (“PUP”), a wholly-owned subsidiary of the Company entered into a sale and purchase agreement (“SPA”) with Golden Land Berhad (“GLB”) to acquire a piece of land owned by GLB and its four subsidiaries for a total purchase price of RM655.00 million. As at 31 December 2015, the Group has paid a deposit of RM365.50 million (Note 27). Upon completion of the proposed acquisition, PUP will acquire the GLB land and the shares of the four subsidiaries of GLB namely Yapidmas Plantation Sdn Bhd (“YPSB”), Sri Kehuma Sdn Bhd (“SKSB”), Ladang Kluang Sdn Bhd (“LKSB”) and Tanah Emas Oil Palm Processing Sdn Bhd (“TEOPP”). On 8 December 2015, all the conditions precedent under the SPA in respect of the proposed acquisition have been fulfilled and accordingly the SPA become unconditional. The proposed acquisition has been completed on 14 March 2016 in accordance with the terms of the SPA and as mutually agreed between PUP and GLB. Accordingly, YPSB, SKSB, LKSB and TEOPP have become indirect wholly-owned subsidiary of the Company. The provisional effect of the acquisition is as follows: Carrying value RM’000 Property, plant and equipment 403,170 Biological assets 177,605 Net current liabilities (107,570) Total net assets acquired 473,205 Purchase consideration 655,000 Provisional goodwill 181,795 The cash outflow on the acquisition is as follows: Purchase consideration: 655,000 Less: Cash and cash equivalents acquired (7,079) Net cash outflow on acquisition 647,921