FIMA CORPORATION ANNUAL REPORT 2018

144

NOTES TO THE FINANCIAL STATEMENTS

F I N A N C I A L S TAT E M E N T S

16. INVESTMENTS IN SUBSIDIARIES (CONT’D.)

(f)

During the year, the Company subscribed to RM1.0 million (10 units) redeemable convertible loan stocks issued by a

subsidiary, Taka Worldwide Trading Sdn. Bhd., with a nominal value of RM100,000 per loan stock at 5.0% per annum

coupon rate.

(g)

On 29 May 2017, the Company acquired 110 ordinary shares of Next Oasis Sdn Bhd (“Next Oasis”), representing the

remaining 11% of the equity interest in Next Oasis for a purchase consideration of RM173,000.

(h)

Acquisition of subsidiary

On 6 October 2017, FCB Plantation Holdings Sdn. Bhd. has entered into a conditional Sale and Purchase Agreement

with Java Berhad to acquire 1,000,000 ordinary shares representing the entire total issued and paid-up capital of JPSB

for a purchase consideration of RM4,613,941. JPSB holds an 80% interest in Ladang Bunga Tanjong Sdn. Bhd., which

operates an oil palm plantation held under the Individual Title Geran 36415, Lot 2429, Mukim Lubok Bongor, Jajahan

Jeli, Kelantan measuring approximately 3,289.9 acres or 1,331.0 hectares. The lease period for the land is for 66 years

and expiring on 28 September 2069. The acquisition was completed on 20 February 2018. On 6 April 2018, JPSB has

changed its name to FCB Eastern Plantations Sdn. Bhd..

The effect of the post acquisition results not taken in the financial statements of the Group during the year amounting to

RM181,000.

The details of the net assets acquired and cash flows arising from the acquisition of JPSB’s Group are as follows:

Carrying

Fair

Amount

Value

RM’000

Property, plant and equipment

13,038

26,400

Biological assets

11,198

8,600

Trade and other receivables

Cash and bank balances

Inventories

Trade and other payables

(149)

Borrowings

(29,026)

(4,845)

5,919

Less: Non-controlling interest shares on fair value of Ladang

Bunga Tanjong Sdn. Bhd.

(1,030)

4,889

Negative goodwill on acquisition

(275)

Purchase consideration settled in cash

4,614

Less: Cash and bank balances

(50)

Cash outflow of the JPSB Group acquisition

4,564