FGV Audited Financial Statements 2020

24 INVESTMENT IN SUBSIDIARIES (continued) (b) Acquisitions, incorporation and disposal of subsidiaries during the financial year Note 1 On 19 February 2020, FGV Integrated Farming Holdings Sdn. Bhd. (“FGVIF”) (previously known as FGV Leads Sdn. Bhd.), a wholly-owned subsidiary of the Company, subscribed to 60% equity interest of FGV Dairy Farm Sdn. Bhd. (previously known as Redagri Farm Sdn. Bhd.) and its wholly-owned subsidiary, Bright Cow Industries Sdn. Bhd. (“FGVDF Group”) for a total consideration of RM10.05 million. Refer (b)(i) for the effects of the acquisition of FGVDF Group. Note 2 On 8 May 2020, FGV Trading Sdn. Bhd. (“FGVT”), a wholly-owned subsidiary of the Company, entered into a shareholder agreement with Pre Unique India Private Limited (“PU”) to manage and operate FGV-PU India Pte. Ltd. (“FGVPU”), a company incorporated in India. The subscription for the shares by FGVT and PU were INR24.5 million (RM1.39 million) and INR10.5 million respectively. Consequently, FGVPU became a 70% subsidiary of FGVT. Note 3 On 14 September 2020, FGVIF entered into a shareholder agreement with Gogo Trade Asia Sdn. Bhd. (“GTA”) to manage and operate FGV Agro Fresh Technology Sdn. Bhd. (“FGV AFT”) (formerly known as Agro Fresh Technology Group Sdn. Bhd.), a company incorporated in Malaysia. The subscription consideration for the shares by FGVIF and GTA were RM520,000 and RM480,000 respectively. Consequently, FGV AFT became a 52% subsidiary of FGVIF. Note 4 On 14 October 2020, Felda Holdings Bhd. incorporated a wholly-owned subsidiary known as FGV Products Sdn. Bhd., a company incorporated in Malaysia. Note 5 On 23 December 2020, FGV Downstream Sdn Bhd, a wholly-owned subsidiary of the Company, disposed its 70% equity interest in FGV Cambridge Nanosystems Limited and its subsidiary GasPlas AS (“FGV CNS Group”) which previously had been reclassified to assets held for sale, for a total consideration of £8 million (approximately RM43.92 million), resulting in a gain on disposal of RM31.52 million to the Group (Note 38). (i) The effects of the acquisition of FGVDF Group during the financial year are as follows: Carrying value / fair value RM’000 Property, plant and equipment 10,521 Deferred tax assets 563 Inventories 8 Receivables 71 Cash and cash equivalents 10,257 Payables (1,103) Borrowing (13,596) Taxation (32) Total net assets acquired 6,689 Non-controlling interests (2,676) Fair value of net assets acquired 4,013 124 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 FGV HOLDINGS BERHAD Audited Financial Statement 2020