Kenanga Investment Bank Berhad Annual Report 2021 222 Our Sustainability Approach About This Report We Are Kenanga Message From Chairman and GMD 13. INVESTMENTS IN SUBSIDIARIES (CONT'D.) (i) Kenanga Investors Berhad (“KIB”), a wholly-owned subsidiary of the Bank, entered into a Share Purchase Agreement (“SPA”) on 1 April 2020 with Ericsenz Partners Sdn Bhd for the disposal of 6,500,000 ordinary shares in Libra Invest Berhad representing 100% of the issued and paid-up share capital of Libra Invest Berhad for a consideration of RM10,750,000.00. The disposal was completed on 30 April 2021 and Libra Invest Berhad has ceased to be a wholly-owned subsidiary of KIB. The disposal had the following effects on the statement of financial position of the Group as at 31 December 2021: Effect of disposals RM'000 Total assets 6,214 Total liabilities 193 Net assets disposed 6,021 Gain on disposal of subsidiaries (Note 32) 4,729 Sales proceeds from disposal 10,750 Less: Cash and short term funds of a subsidiary disposed (5,378) Net cash receivable on disposal 5,372 (ii) On 19 February 2021, the Bank's asset management subsidiary, KIB completed the acquisition of 100% equity stake in I-VCAP. Pursuant to the SPA, the acquisition involves KIB acquiring shares of I-VCAP for an aggregate purchase consideration of RM11.6 million. The purchase consideration was fully paid by cash. Accounting for acquisition at the Group level At the Group level, the Group's acquisition of the assets and liabilities of I-VCAP was accounted for using the acquisition method of accounting in accordance with MFRS 3 Business Combinations. Recognised amounts of identifiable assets and liabilities: Fair value RM'000 Cash and bank balances 11,000 Other receivables 98 Tax recoverable 4 Total net assets 11,102 Goodwill 495 11,597 Consideration settled in cash 11,597 Less: Cash and cash equivalents of subsidiary acquired (11,000) Net cash outflow on acquisition 597 Notes to the Financial Statements 31 December 2021
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