FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD FINANCIAL STATEMENTS 236 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 21 INVESTMENT IN SUBSIDIARIES (CONTINUED) (c) Acquisition, dilution of interest and liquidation of subsidiaries in previous financial year (continued) Note 8 On 8 August 2016, Felda Palm Industries Sdn. Bhd., an indirect subsidiary of the Group, received a capital return sum of RM100,000,000 relating to its 72% interest in Sutrajaya Shipping Sdn. Bhd. (“Sutrajaya”) arising from Sutrajaya’s liquidation process. As a result of the capital return, the Group derecognised its interest in Sutrajaya and recorded a gain on liquidation of RM25,291,000 in the previous financial year. Note 9 On 23 December 2016, FHB received a capital return sum RM5,230,000 relating to its 100% interest in Felda Enterprise Sdn. Bhd. (“FESB”) arising from FESB’s liquidation process. As a result of the capital return, the Group derecognised its interest in FESB and recorded a gain on liquidation of RM833,000 in the previous financial year. (i) The effects of the acquisition of Yapidmas during the previous financial year were as follows: Carrying value RM’000 Fair value RM’000 Property, plant and equipment 320,754 659,653 Inventories 2,314 2,314 Trade and other receivables 9,202 9,202 Cash and cash equivalents 10,882 10,882 Payables (18,821) (18,821) Borrowings (697) (697) Deferred tax liabilities (25,754) (107,090) Total net assets acquired 297,880 555,443 The cash outflow on acquisition was as follows: RM’000 Consideration paid 655,000 Less : Cash and cash equivalents acquired (10,882) 644,118 Less: Deposit paid in 2015 (365,500) Net cash outflow on acquisition 278,618 The goodwill on acquisition was as follows: RM’000 Purchase consideration 655,000 Fair value of net assets acquired (555,443) Goodwill on acquisition (Note 20) 99,557