17. INVESTMENTS IN SUBSIDIARIES Corporation 2021 2020 RM’000 RM’000 At 1 January 14,981,888 14,986,590 Additional investments in subsidiaries (Note a) 2,556,754 292,438 Redemption of redeemable cumulative preference shares (“RCPS”) (Note b) (1,098,682) – Disposal of interest in a subsidiary (Note c) (3,406) – Impairment of investment in unquoted subsidiaries (Note 5(a)) (5,187) (26,627) Currency translation differences 550,910 (270,513) At 31 December 16,982,277 14,981,888 Quoted shares 269,866 260,459 Unquoted shares 16,712,411 14,721,429 16,982,277 14,981,888 Included in unquoted shares are preference shares of RM10,601,000 (2020: RM9,031,255,000) which bear interest ranging from 5.00% to 6.00% (2020: 5.00% to 6.00%) per annum. (a) Additional investments in subsidiaries (i) During the current financial year, the Corporation increased its investment in Portovenere and Lerici (L) Pte Ltd by USD280,272,000 (RM1,162,000,000) in support of the subsidiary’s debt capitalisation exercise. (ii) During the current financial year, the Corporation increased its investment in MISC Offshore (Americas) Holdings Pte Ltd by USD318,512,000 (RM1,320,541,000) in support of the subsidiary’s debt capitalisation exercise. (iii) During the current financial year, the Corporation increased its investment in Magellan X Holdings (L) Pte Ltd (“Magellan X Holdings (L)”) by USD17,900,000 (RM74,213,000) by cash consideration. (iv) In the previous financial year, the Corporation had incorporated a new subsidiary, Magellan X Holdings (L), under the Labuan Companies Act, 1990 with a total paid-up capital of RM292,438,000. The principal activities of Magellan X Holdings (L) is investment holding. (b) Redemption of RCPS (i) During the current financial year, the Corporation has approved a partial redemption of RCPS for its investment in MISC Tanker Holdings Sdn Bhd amounting to USD35,000,000 (RM145,109,000). (ii) During the current financial year, the Corporation has approved a partial redemption of RCPS for its investment in MISC Offshore (Americas) Holdings Pte. Ltd. amounting to USD230,000,000 (RM953,573,000). 17. INVESTMENTS IN SUBSIDIARIES (CONT'D.) (c) The Corporation had on 9 April 2021 completed the disposal of 3,795,200 ordinary shares representing approximately 31% of the total issued share capital of FPSO Ventures Sdn. Bhd. (“FVSB”), a partially-owned subsidiary of the Group, for a total consideration of RM26,923,000. As a result, the Group and the Corporation recognised a loss and a gain on the disposal of RM2,241,000 and RM25,025,000 respectively in the current financial year. Accordingly, FVSB ceased to be a subsidiary of the Corporation and became a 20% associated company of the Corporation from the said date. The net effect of the above disposal to the Group’s cash flows and carrying amount of assets and liabilities disposed are as follows: Carrying amount at disposal date RM’000 Property, plant and equipment 13,336 Other non-current assets 1,602 Current assets 94,670 Current liabilities (18,461) Non-current liabilities (8,256) Non-controlling interests (36,807) Share of net assets 46,084 Less: Reclassification of an associated company at fair value (16,920) Net assets disposed 29,164 Loss on disposal of a subsidiary RM’000 Sale consideration 26,923 Net assets disposed (29,164) Loss on disposal of a subsidiary (2,241) The effect of the disposal on the cash flows is as follows: RM’000 Sale consideration received 26,923 Less: Cash and cash equivalents disposed (48,587) Net cash flow on disposal (21,664) Details of the subsidiaries are disclosed in Note 40. NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 MISC Berhad 374 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 375 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
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