242 KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2025 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2025 14. INVESTMENT IN ASSOCIATES (CONT’D.) (a) Details of the associates are as follows (cont’d.): ^ On 29 December 2025, Kenanga Capital Sdn Bhd, a wholly-owned subsidiary of the Bank, had disposed 980,392 ordinary shares representing 20% of the total number of issued shares of Kenanga Capital Islamic Sdn Bhd for a total cash consideration of RM3,696,662 to Bay Amarantite Sdn Bhd. Arising therefrom, Kenanga Capital Islamic Sdn Bhd ceased to be part of the KIBB Group. The disposal resulted in a net gain of RM700,000 to the Group. The detail of the disposal of Kenanga Capital Islamic Sdn Bhd are as follows: RM’000 Sales proceeds 3,697 Less: Unquoted shares at cost 1,784 Share of post acquisition gain 1,213 Net assets 2,997 Net gain on disposal 700 The Group and the Bank carried out an impairment assessment on the associates in accordance with the accounting policy stated in Note 3.4(l). The recoverable amount is based on the Group’s share of net assets of the associates or future cash flows discounted to their present value. Based on management’s assessment, the Group and the Bank have made adequate provisions for impairment loss on the investments as at the financial year end. (b) Summarised financial information of the material associate is as follows: The summarised financial information represents the amounts in the MFRS Accounting Standards financial statements of the material associate and not the Group’s share of those amounts. (i) Summarised statement of financial position Wasatah Capital 2025 RM’000 2024 RM’000 Current assets 86,026 170,801 Non-current assets 260,855 295,435 Total assets 346,881 466,236 Current liabilities 2,450 27,824 Non-current liabilities 10,576 6,317 Total liabilities 13,026 34,141 Net assets * 333,855 432,095 * The net assets are net of zakat expenses which are not shared by non-Saudi shareholders in accordance with the regulations of Zakat department of Zakat & Income Tax as applicable in the Kingdom of Saudi Arabia. Therefore, the net assets will not represent the Group’s and the Bank’s share of net assets in Wasatah Capital as disclosed in Note 14(b)(iii) below. The difference will be the total zakat expenses that were fully borne by the Saudi shareholders.
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