15. Investments in subsidiaries Corporation 2016 2015 RM’000 RM’000 At 1 January 11,280,489 9,228,364 Additional investments in subsidiaries (Note a) 5,518,646 54,111 Liquidation of a subsidiary (Note b) – (57,221) Disposal of a subsidiary (Note c) (312,921) – Impairment of investment in unquoted subsidiaries (Note d) – (375,657) Currency translation differences 2,428,960 2,430,892 At 31 December 18,915,174 11,280,489 Quoted shares 289,941 277,625 Unquoted shares 18,625,233 11,002,864 18,915,174 11,280,489 Included in unquoted shares are preference shares of RM12,966,392,000 (2015: RM8,486,575,000) which bear interest ranging from 5.00% to 6.00% (2015: 5.00% to 6.00%) per annum. a. (i) During the financial year, the Corporation increased its investment in MISC Tanker Holdings Sdn. Bhd. by RM3,791,157,000, in support of the subsidiary’s debt capitalisation exercise and as consideration for the transfer of ships via issuance of shares. (ii) The Corporation had on 24 February 2016 entered into a conditional share purchase agreement with E&P Venture Solutions Co Sdn. Bhd., a wholly-owned subsidiary of PETRONAS Carigali Sdn. Bhd., for the equity buyback of the remaining 50% equity interest in a joint venture, Gumusut-Kakap Semi-Floating Production System (L) Limited (“GKL”), for a cash consideration of USD445,000,000 (RM1,727,489,000). The equity buyback was approved by the shareholders of the Corporation at the Extraordinary General Meeting held on 19 April 2016. Upon completion of the equity buyback on 13 May 2016, GKL became a wholly-owned subsidiary of the Corporation. The Group recognised a loss from remeasurement of previously held interest in a joint venture amounting to RM18,234,000 and a gain on acquisition of a subsidiary of RM823,542,000 for this acquisition in the current financial year. MISC BERHAD • Annual Report 2016 236 notes to the financial statements - 31 december 2016
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