UEM EDGENTA BERHAD
2016 ANNUAL REPORT
17. INVESTMENT IN SUBSIDIARIES
Unquoted shares at cost:
– Malaysian subsidiaries
– Foreign subsidiaries
Less: Accumulated impairment
Certain unquoted shares in subsidiaries are pledged to financial institutions for facilities granted to the Group and the
Company as disclosed in Note 28(a) and (b).
Further details of the subsidiaries are disclosed in Note 44.
Current financial year
(i) Incorporation of Edgenta TMS Sdn. Bhd. (“Edgenta TMS”)
On 12 February 2016, UEM Sunrise Edgenta TMS Sdn. Bhd. (“UEMSET”), a 70% owned subsidiary of Edgenta
Township Management Services Sdn. Bhd., has subscribed for 70% equity interest in Edgenta TMS. Following
the transaction, Edgenta TMS is now a subsidiary of UEMSET.
(ii) Acquisition of KFM Holdings Sdn. Bhd. (“KFM”)
On 6 April 2016, the Company acquired a total of 12,000,000 ordinary shares of RM1.00 each in KFM,
representing 80% of the total issued and paid-up share capital of KFM for a total consideration of up to
RM128.0 million satistified as follows:
Upfront payment of RM92.0 million upon completion of the Shares Sale Agreement as follows:
– Cash payment of RM36.0 million; and
– RM56.0 million from the issuance and allotment of 18,122,977 new ordinary shares of RM0.25 each in
the Company at an issuance price of RM3.09 per share. The fair value of the shares on the date of
issuance is RM3.57 per share.
The balance of the RM36.0 million will be disbursed over the next three financial years subject to
achievement of key financial targets as follows:
– Deferred cash payment of RM20.0 million upon achievement of targets for financial years ending 2016,
2017 and 2018, and;
– Incremental value payment of RM16.0 million upon achievement of specific financial milestones.