208 F INANC IAL Statements 05 Sect ion Ranhi ll Ut i l i t i es Berhad NOTES TO THE F INANC I AL STATEMENTS For the year ended 31 December 2022 20. INVESTMENT IN SUBSIDIARIES (Contd.) (f) Internal reorganisation and establishment of new reporting segment in prior year Subsequent to the acquisition of RBSB and RWSB, the Group had in prior year carried out an internal reorganisation through a scheme of amalgamation with the objective of setting up an enlarge group under RBSB for the Group’s engineering-based subsidiaries to provide “one-stop solution” for its customers. Accordingly, a new reporting segment, i.e, engineering services sector, had been formed. The details of the internal reorganisations are as follows: (i) 30 September 2021, RBSB entered into a share sale agreement with RCSB to acquire: • 51% of the total issued shares and paid-up capital of RWSB; • 100% of the total issued shares and paid-up capital of Ranhill Water Services Sdn. Bhd. (“RWSSB”); • 60% of the total issued shares and paid-up capital of Ranhill Power O&M Sdn. Bhd. (“RPOM”); and • 80% of the total issued shares and paid-up capital of Ranhill Power II O&M Sdn. Bhd. (“RPOMII”). The share sale transaction to acquire RWSSB, RPOM and RPOM II was completed on 9 November 2021 while the share sale transaction to acquire RWSB was completed on 23 December 2021. Consequently, RCSB ceased to be the immediate holding company of RWSB, RWSSB, RPOM and RPOM II, and RBSB becomes the immediate holding company of RWSB, RWSSB, RPOM and RPOM II. (ii) On 30 September 2021, RBSB has entered into a share sale agreement with Ranhill Water Technologies (Cayman) Ltd. (“RWTC”), a wholly owned subsidiary of RCSB which is incorporated in Cayman Islands, to acquire 100% of the total issued shares and paid up capital of Ranhill Water Technologies Sdn. Bhd. (“RWTSB”). The share sale transaction was completed on 9 November 2021. Consequently, RWTC ceased to be the immediate holding company of RWTSB, and RBSB becomes the immediate holding company of RWTSB. (iii) On 30 September 2021, RWTC has entered into a share sale agreement with RWTSB to acquire: • 100% of the total shares held in AnuRak Water Treatment Facilities Co. Ltd. (“AnuRak”), a company incorporated in Thailand; • 100% of the total shares held in Ranhill Water Technologies (Thai) Ltd. (“RWTT”), a company incorporated in Thailand. The share sale transaction was completed on 1 November 2021. Consequently, RWTSB ceased to be the immediate holding company of AnuRak and RWTT, and RWTC becomes the immediate holding company of AnuRak and RWTT. The cost of the above internal reorganisation which has been charged out as administrative expenses amounted to RM446,000 in previous financial year.
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