218 REDISCOVER | REBUILD | SUSTAIN Notes to the financial statements - 31 December 2015 17. Investments in joint ventures (cont’d.) Group 2015 2014 RM’000 RM’000 Contingent liabilities Bank guarantees extended to third party – 198,488 a. In the previous financial year, VTTI formed a Master Limited Partnership (“MLP”), i.e. VTTI Energy Partners LP (“VTTI Energy”) to own, operate, develop and acquire refined petroleum product and crude oil terminaling and related energy infrastructure assets. On 1 August 2014, VTTI Energy completed its initial public offering (“IPO”) with the sale and issuance of 49.0% of its limited partner interest to the public. In connection with the IPO, VTTI Energy acquired 36.0% ownership interest in VTTI MLP BV, a subsidiary of VTTI, which owns a portfolio of six terminals. Included in the previous financial year’s share of earnings of joint ventures is the Group’s share of the net gain from this listing exercise of RM110,317,000. b. On 21 August 2015, the Corporation and its subsidiary, MTTI Sdn. Bhd. (“MTTI”) entered into an Agreement for Sale and Purchase of 50% of the Issued Share Capital of VTTI B.V. with VIP Terminals Finance B.V., ultimately a wholly-owned subsidiary of Vitol Investment Partnership Limited, for the disposal of 50% of the issued share capital of VTTI B.V. for a cash consideration of USD830.0 million (RM3,246,279,000). The disposal was completed on 7 November 2015 and VTTI ceased to be a joint-venture company of MTTI. The Group recognised a gain on disposal of investment in joint venture amounting to RM65,317,000 in the current financial year as disclosed in Note 4. Details of the joint ventures are disclosed in Note 39.
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