CAHYA MATA SARAWAK ANNUAL REPORT 2016

149 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 20. INVESTMENTS IN ASSOCIATES (CONT'D.) Details of the associates, which are incorporated in Malaysia, are as follows (cont'd.): Name of associates Principal activities Proportion of ownership interest 2016 2015 % % Held through subsidiaries: K & N Kenanga Holdings Berhad Investment holding, stockbroking and financial services business - 21.0 Kenanga Investment Bank Berhad Investment holding, stockbroking and financial services business 21.2 - Malaysian Phosphate Additives (Sarawak) Sdn. Bhd. (i) Manufacturing and trading of inorganic feed phosphates 40.0 40.0 OM Materials (Samalaju) Sdn. Bhd. (i) Processing, smelting and trading of ferro alloy products 25.0 25.0 OM Materials (Sarawak) Sdn. Bhd. (ii) Processing, smelting and trading of ferro alloy products 25.0 25.0 (i) Has yet to commence business operations. (ii) The shares of this associate have been pledged to a consortium of banks for credit facilities granted to this associate. (a) Subscription of Irredeemable Convertible Preference Shares (“ICPS”) in an associate On 7 April 2016, the Group subscribed 110,000,000 number of ICPS in OM Materials (Sarawak) Sdn. Bhd., through its wholly-owned subsidiary, Samalaju Industries Sdn. Bhd. for a total cash consideration of RM110 million. (b) Internal reorganisation of an associate On 1 November 2016, the Kenanga Group completed its merger and capital restructuring under its Group Internal Reorganisation. In this connection, the Group and Company ceased to be the substantial shareholders of K&N Kenanga Holdings Berhad but instead, became substantial shareholders of Kenanga Investment Bank Berhad on even date. (c) Acquisition of additional interests and additional investments in associates During the year the Group acquired 66,900,000 (2015: 550,000) ordinary shares in Malaysian Phosphate Additives (Sarawak) Sdn. Bhd., through its wholly owned subsidiary, Samalaju Industries Sdn. Bhd. for a total cash consideration of RM66,900,000 (2015: RM550,000). On 26 March 2015, the Group acquired 18,760,313 ordinary shares representing 5% equity interest of the issued and paid up share capital in OM Materials (Sarawak) Sdn. Bhd. and 6,305,500 ordinary shares representing 5% equity interest of the issued and paid up share capital in OM Materials (Samalaju) Sdn. Bhd. through Samalaju Industries Sdn. Bhd., a wholly-owned subsidiary of the Company, for a total cash consideration of RM65,411,671, thereby increasing the total equity interest in these two companies from 20% to 25%.