FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 FINANCIAL STATEMENTS 235 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 21 INVESTMENT IN SUBSIDIARIES (CONTINUED) (b) Liquidation, incorporation and restructuring of subsidiaries during the financial year Note 1 On 10 February 2017, the member’s voluntary winding up process for Felda Global Ventures Livestock Sdn. Bhd. (“FGVL”), a dormant subsidiary of the Company had been completed and was deemed fully dissolved pursuant to Section 459(5) of the Companies Act 2016. As a result, the Group derecognised its interest in FGVL and recorded a loss on liquidation of RM68,000 during the financial year. Note 2 On 9 June 2017, FGV Seri Costa Sdn. Bhd., a wholly-owned subsidiary, changed its name to FGV Resources Sdn. Bhd. Note 3 On 21 July 2017, the Company incorporated a wholly-owned subsidiary known as FGV Leads Sdn. Bhd., a company incorporated in Malaysia with a share capital of RM2. Note 4 On 20 December 2017, Felda Global Ventures Plantations Sdn. Bhd. (“FGVP”), a wholly-owned subsidiary, entered into a Share Sale Agreement to acquire 100% of the total issued and paid-up share capital of Asian Plantations Limited (“APL”) from the Company at its carrying amount of RM567.90 million. Thereafter, on 27December 2017, the APL shares were acquired by FeldaGlobal Ventures Plantations (Malaysia) Sdn. Bhd. (“FGVPM”), a wholly-owned subsidiary of FGVP via a Share Sale Agreement for a total consideration of the same amount. The above arrangement is an internal re-organisation exercise which resulted in APL becoming a direct subsidiary of FGVPM and an indirect subsidiary of the Company. There is no change in the Group’s effective interest in APL arising from the internal re-organisation exercise. (c) Acquisition, dilution of interest and liquidation of subsidiaries in previous financial year Note 5 On 14 March 2016, Pontian United Plantations Berhad, a wholly-owned subsidiary, acquired a piece of land owned by Golden Land Berhad and its four wholly-owned subsidiary companies namely Yapidmas Plantation Sdn. Bhd., Sri Kehuma Sdn. Bhd., Ladang Kluang Sdn. Bhd. and Tanah Emas Oil Palm Processing Sdn. Bhd. (together “Yapidmas”) for a total purchase consideration of RM655 million. Refer c(i) for the effects of the acquisition of Yapidmas. Note 6 On 7 April 2016, Felda Global Ventures India Sdn. Bhd., a wholly-owned subsidiary, changed its name to FGV Seri Costa Sdn. Bhd. Note 7 On 27 September 2016, Felda Holdings Bhd. (“FHB”), a wholly-owned subsidiary, entered into a shareholder agreement with a third party warehouse operator namely Afico Terminal Services Sdn. Bhd. (“ATS”) to jointly manage and operate FGV Logistics Sdn. Bhd. (“FGVL”). The subscription consideration for the share by FHB and ATS were RM16,200,000 and RM1,800,000 respectively. Consequently, FHB’s effective interest in FGVL decreased from 100% to 90%.