CAHYA MATA SARAWAK ANNUAL REPORT 2016

145 Cahya Mata Sarawak Berhad A N N U A L R E P O R T 2 0 1 6 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 19. INVESTMENTS IN SUBSIDIARIES (CONT'D.) Details of the subsidiaries are as follows (cont'd.): Proportion of ownership interest Name of subsidiaries Country of incorporation Principal activities 2016 % 2015 % Subsidiary of Samalaju Industries Sdn. Bhd. Samalaju Properties Sdn. Bhd. Malaysia Provision and management of temporary accommodation, property and township development 51.0 51.0 Subsidiary of Samalaju Properties Sdn. Bhd. Samalaju Hotel Management Sdn. Bhd. Malaysia Hotel owner and operator 100.0 100.0 (i) Another 60% is held by CMS Resources Sdn. Bhd. (ii) Placed under members’ voluntary liquidation. (iii) Audited by firms other than Ernst & Young. (iv) Disposed to PPES Works (Sarawak) Sdn. Bhd. on 19 August 2016. (v) Another 40% is held by CMS Premix Sdn. Bhd. (a) Changes in shareholding in PPESW BPSB JV Sdn. Bhd. (“PBJV“) On 19 August 2016, PPES Works (Sarawak) Sdn. Bhd. (“PPESW“) acquried two ordinary shares of RM1 each, representing the entire equity interest in PBJV from CMS Property Development Sdn.Bhd., a wholly-owned subsidiary of the Company. (b) Increase in paid-up share capital of subsidiaries (i) PBJV increased its issued and paid-up share capital from RM2 to RM10,000,000 dividend into 9,999,998 ordinary shares of RM1 each, with PPESW and Bina Puri Sdn. Bhd. subscribing to 6,999,998 and 3,000,000 ordinary shares, respectively. (ii) During the year, the Company subscribed for an additional 46,900,000 (2015: 90,952,000) ordinary shares of RM1 each in Samalaju Industries Sdn. Bhd. for a total cash consideration of RM46,900,000 (2015: RM90,952,000). The Company also subscribed 110,000,000 redeemable preference shares of RM1 each in Samalaju Industries Sdn. Bhd. for a total cash consideration of RM110,000,000 (2015: Nil). (iii) On 29 February 2016, the Company subscribed for an additional 35,000,000 ordinary shares of RM1 each in Cahya Mata Sarawak Management Services Sdn. Bhd. for a total cash consideration of RM35,000,000.