MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS MISC BERHAD | Annual Report 2017 226 15. INVESTMENTS IN SUBSIDIARIES Corporation 2017 RM'000 2016 RM'000 At 1 January 18,915,174 11,280,489 Additional investments in subsidiaries (Note a) 568,376 5,518,646 Disposal of a subsidiary (Note b) - (312,921) Impairment of investment in unquoted subsidiaries (Note 5(a)) (129,452) - Currency translation differences (3,496,017) 2,428,960 At 31 December 15,858,081 18,915,174 Quoted shares 262,463 289,941 Unquoted shares 15,595,618 18,625,233 15,858,081 18,915,174 Included in unquoted shares are preference shares of RM11,952,712,000 (2016: RM12,966,392,000) which bear interest ranging from 3.00% to 6.00% (2016: 3.00% to 6.00%) per annum. (a) Additional investments in subsidiaries (i) During the current financial year: (a) The Corporation increased its investment in MISC Tankers Sdn. Bhd. ("MTSB"), a wholly owned subsidiary by RM566,346,000, in support of the subsidiary's debt capitalisation exercise and as a consideration for transfer of ships via issuance of ordinary shares and Cumulative Redeemable Preferences Shares ("CRPS"). (b) The Corporation had incorporated Eaglestar Marine Holdings (L) Pte. Ltd. ("EMH") with a total paid up share capital of USD1,000,000 divided into 1,000,000 ordinary shares. The principal activities of EMH are the provision of marine services and investment holdings. Subsequent to the incorporation of EMH, the Corporation disposed 50% of its shares in EMH to AET Inc. The details of subsidiaries of EMH is disclosed in Note 39. (ii) In the previous financial year: (a) The Corporation increased its investment in MTSB 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. (b) TheCorporationhadon13May2016completed theequitybuybackof the remaining50%equity interest ina joint venture, Gumusut-Kakap Semi-Floating Production System (L) Limited ("GKL"), for a cash consideration of USD445,000,000 (RM1,727,489,000) from, E&P Venture Solutions Co Sdn. Bhd., a wholly-owned subsidiary of PETRONAS Carigali Sdn. Bhd.. Upon completion, GKL became a wholly-owned subsidiary of the Corporation.