FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 266 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 22 INVESTMENT IN SUBSIDIARIES (CONTINUED) (c) Incorporation, acquisitions and disposal of subsidiaries in previous financial year Note 7 On 28 January 2015, Felda Global Ventures Kalimantan Sdn. Bhd. ("FGVK"), a subsidiary of Felda Global Ventures Plantations Sdn. Bhd. ("FGVP"), incorporated PT Bumi Agro Nusantara ("PT BAN") in Indonesia with issued and paid-up share capital of Rp3,010,500,000 (RM0.90 million) and are held by FGVK of 99.6% and FGVP of 0.4% respectively. Note 8 On 28 January 2015, Felda Global Ventures Downstream Sdn. Bhd. ("FGVD"), a wholly owned subsidiary of the Company has exercised its option to purchase 20% of the issued and paid-up share capital of FGV Lipid Venture Sdn. Bhd. ("FGV Lipid") from Lipid Venture Sdn. Bhd. ("LVSB") by way of a Supplemental Agreement dated 28 January 2015 to the Joint Venture and Shareholders' Agreement between FGVD and LVSB dated 13 November 2013. Pursuant thereto, FGVD has raised its shareholdings in FGV Lipid from current 40% to 60% which resulted in FGV Lipid becoming a subsidiary of the Group. Note 9 On 31 March 2015, the Company acquired a 100% equity interest in Felda Iffco South China Ltd ("FISC") from Felda Iffco Sdn. Bhd., a joint venture of FGVD, a company incorporated in China for a purchase consideration of RMB320 million (RM181.34 million). FISC has changed its business name to FGV China Oils Ltd ("FGVCO") with effect from 22 August 2015. Refer c(i) for the effects of the acquisition of FGVCO. Note 10 On 10 April 2015, MSMMalaysia Holdings Berhad ("MSM"), a subsidiary of the Company acquired a 100% equity interest in MSM Sugar Refinery (Johor) Sdn. Bhd. ("MSM Sugar Refinery"), a company incorporated in Malaysia for a cash consideration of RM2. Note 11 On 1 October 2015, MSM incorporated a wholly-owned subsidiary, MSM Trading International DMCC in United Arab Emirates with issued and paid-up share capital of AED4,000,000. Note 12 On 7 December 2015, Felda Holdings Bhd., a wholly-owned subsidiary of the Group, acquired the entire issued and paid-up share capital of FGV Logistics Sdn. Bhd. ("FGV Logistics"), a company incorporated in Malaysia for a cash consideration of RM2. (i) The effects of the acquisition of FGVCO is as follows: Carrying value RM'000 Fair value RM'000 Property, plant and equipment 125,434 151,085 Intangible assets - 13,803 Prepaid lease payments 27,991 29,752 Inventories 10,636 10,636 Trade and other receivables 798 798 Financial assets at fair value through profit or loss 2,827 2,827 Cash and cash equivalents 1,811 1,811 Payables (9,188) (9,188) Deferred tax liabilities - (10,304) Total net assets acquired 160,309 191,220