Fraser & Neave Holdings Bhd Annual Report 2021

8. INVESTMENTS IN SUBSIDIARIES #CONTINUED$ (c) Purchase price allocation (“PPA”) arising from acquisition of Sri Nona Companies (continued) Goodwill Goodwill was determined as a result of the acquisition as follows: Note RM’000 Total consideration transferred 59,498 Fair value of identifiable net assets (32,456) Goodwill 7 27,042 The goodwill is attributable mainly to the skills and technical talent of Sri Nona Companies work force, and the synergies expected to be achieved from integrating the company into the Group’s existing halal business. None of the goodwill recognised is expected to be deductible for income tax purposes. Acquisition-related costs The Group incurred acquisition-related costs of RM516,000 related to external legal fees and due diligence costs. The legal fees and due diligence costs have been included in administrative expenses in the Group’s consolidated statement of profit or loss. In the previous financial year, (a) The Company’s wholly owned subsidiary, Fraser & Neave (Malaya) Sdn Bhd incorporated a wholly owned subsidiary, Fraser and Neave MENA DWC-LLC (“F&N MENA”) with a registered and paid up share capital of AED300,000 comprising 300,000 ordinary shares of AED1 each. F&N MENA was set up to conduct the business of trading in food and beverages and dairy products. (b) The Company subscribed additional issued and paid up share capital of RM10,000,000 in its wholly owned subsidiary, F&N AgriValley Sdn Bhd for a total cash consideration of RM10,000,000 comprising 10,000,000 ordinary shares. (c) The Company recognised impairment loss of RM1,380,000 for the investments in its subsidiaries, F&N Dairies (Malaysia) Sdn Bhd, F&N Properties Sdn Bhd, Lettricia Corporation Sdn Bhd and Premier Milk (Malaya) Sdn Berhad in “other expenses” as the recoverable amounts are less than the carrying amounts. The Company subscribed to the entire RNCCPS in the following subsidiaries: Issue price RM Number of shares 2021 RM’000 2020 RM’000 Lion Share Management Limited 3,505 21,000 73,604 73,604 Utas Mutiara Sdn Bhd 1,000 17,700 17,700 17,700 Greenclipper Corporation Sdn Bhd 1,000 7,000 7,000 7,000 F&N Properties Sdn Bhd 1,000 57,000 57,000 57,000 Nuvak Company Sdn Bhd 1,000 28,100 28,100 28,100 F&N Dairies Manufacturing Sdn Bhd 1,000 382,000 382,000 382,000 512,800 565,404 565,404 202 NOTES TO THE F INANCIAL STATEMENTS