FGV Annual Report 2015

344 Notes to the Financial Statements For The Financial Year Ended 31 December 2015 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 56 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONTINUED) (f) On 12 June 2015, Felda Global Ventures Kalimantan Sdn Bhd (“FGVK”), an indirect wholly-owned subsidiary of the Company entered into a Heads of Agreement (“HOA”) with PT Rajawali Capital International (“Rajawali Capital”) and PT Rajawali Corpora (“Rajawali Corpora”) (collectively, “Vendors”) in relation to the proposed acquisition of the following: (i) 11,664,357,670 shares, representing 37% equity interests in PT Eagle High Plantations Tbk. (“Eagle High”) (“Eagle High Sale Shares”), a public listed company incorporated under the laws of the Republic of Indonesia, from Rajawali Capital, a company incorporated under the laws of the Republic of Indonesia; (ii) 2,375 shares, representing 95% equity interest in PT Cendrawasih Jaya Mandiri (“CJM”) (“CJM Sale Shares”), a company incorporated under the laws of Republic of Indonesia, from Rajawali Corpora, a company incorporated under the laws of the Republic of Indonesia, and/or its affiliates; (iii) 2,375 shares, representing 95% equity interest in PT Karya Bumi Papua (“KBP”) (“KBP Sale Shares”), a company incorporated under the laws of the Republic of Indonesia, from Rajawali Corpora and/or its affiliates; and (iv) 14 shares, representing 93.3% equity interest in PT Rizki Kemilau Berjaya (“RKB”) (“RKB Sale Shares”), a company incorporated under the laws of the Republic of Indonesia, from Rajawali Corpora and/or its affiliates. The proposed acquisitions are conditional upon the following approvals being obtained: a) approvals of the shareholders of the respective Parties; b) approval of the shareholders of FGV; and c) any other relevant approvals from the Malaysian and Indonesian regulatory authorities or third parties for the purposes of entry into and execution of the terms of each of the conditional sales and purchase agreement and any remittance required by FGV Kalimantan. On 1 December 2015, the discussion for a possible different mode of investment in Eagle High may comprise, among others, potential joint venture, off take agreement or other form of mutually agreed collaborations. The Board of Directors envisage that a conclusive mode of investment in Eagle High would be announced in 2016. (g) On 30 December 2015, the Board of Directors of the Company announced that the following seven (7) dormant subsidiaries have been placed under Member’s Voluntary Winding-Up pursuant to Section 254 (1)(b) of the Companies Act,1965: a) Felda Enterprises Sdn. Bhd., b) Felda Construction Sdn. Bhd., c) Felda Global Ventures Livestock Sdn. Bhd., d) Felda Global Ventures Perlis Sdn. Bhd., e) Felda Farm Products Sdn. Bhd., f) Felda Rubber Products Sdn. Bhd., and g) Sutrajaya Shipping Sdn. Bhd. A liquidator has been appointed for the subsidiaries. The winding up of dormant subsidiaries is part of the Group’s continuing rationalisation effort to improve efficiency and save future costs associated with maintaining these subsidiaries. The Member’s Voluntary Winding-Up of the subsidiaries did not have any material impact on the net assets and earnings per share of the Group and Company for the financial year ending 31 December 2015.