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Group restructuring The Group is restructuring, as part of a strategy for continued growth in revenue and profitability. As part of this strategy, the Group
Group restructuring The Group is restructuring, as part of a strategy for continued growth in revenue and profitability. As part of this strategy, the Group is investing RM48 million in a newly formed company, Peppers Co, representing 50% of the share capital of the company. The remaining 50% shareholding is owned by Smiths Co, a property development company. The contract behind this investment states that the Group and Smiths Co will work together to develop six new hotels, all based at the country's major airports. The investment in Peppers Co is likely to take place in August 2020.~ Partly to provide some of the finance needed for the restructuring, and partly because of its declining revenue, the Group is planning to dispose of Primal Burgers Co. The board approved this disposal in March 2020. Vendor's due diligence has been carried out by Usami & Co, a firm of Chartered Certified Accountants. Usami & Co conducted an independent review of the company's financial position and future prospects and produced a report on their findings, which is made available to potential buyers. At today's date, several potential buyers have expressed an interest and the Group expects that the disposal will take place just after the financial year end.~(1 ) Identify the additional information which should be requested from management in order to effectively audit the disposal of Primal Burgers Co, and explain why this information is required.~
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