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
RM’000
Property, plant and equipment
13,038
26,400
Biological assets
11,198
8,600
Trade and other receivables
38
38
Cash and bank balances
50
50
Inventories
6
6
Trade and other payables
(149)
(149)
Borrowings
(29,026)
(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