MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 200 NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 11. OTHER INVESTMENTS (CONT’D) INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (CONT’D) The fair value of each investment is summarised below:- The Group 2021 2020 Note RM’000 RM’000 Unquoted shares of Entity A 10,774 10,774 Unquoted shares of Entity B 7,923 7,923 Unquoted shares of Entity C 10,408 10,408 Unquoted shares of Entity D 30 30 Unquoted shares of Entity E 225 225 Unquoted shares of Entity F 5,999 5,999 Unquoted shares of Entity G 9,141 9,141 Unquoted shares of Entity H (c) 6,000 3,500 Unquoted shares of Entity I (d) 176,500 90,000 Unquoted shares of Entity J (a) 8,915 - Unquoted shares of Entity K (b) 10,578 - 246,493 138,000 Other investments stated at fair value are analysed into level 2 and level 3 fair value measurements. The level 2 fair value of other investments have been determined based on transacted values during the financial year and the market comparison technique using market multiples derived from quoted prices of companies comparable to the investee, adjusted for the effect of the non-marketability of the unquoted shares. Investments in Entities F, G, and J fall within level 2 fair value measurements. The level 3 fair value of other investments have been determined using discounted cash flow income approach based on pre-tax cash flow projections performed by management based on the significant unobservable inputs. Investments in Entities A, B, C, D, E, H, I and K fall within level 3 fair value measurements. (a) On 28 January 2021, MYEGC subscribed for a total of 38,863,600 shares representing 8.44% of equity interest in Entity J for a total cash consideration of RM8,914,485. (b) On 25 August 2021, MYEGC subscribed for a total of 353,618 shares representing 2.43% of equity interest in Entity K for a total cash consideration of RM10,578,000. (c) On 11 November 2021, MYEGC subscribed for a total of 103,687 Redeemable Convertible Preference Shares (“RCPS”) in Entity H, for a total cash consideration of RM2,500,000. Upon conversion of the RCPS on a fully diluted basis, MYEGC will then hold 33.23% equity interest in Entity H. As at the financial year end, the RCPS has not been converted into ordinary shares. (d) On 31 December 2021, MYEGC entered into a Share Sales Agreement for the purchase of 118,000,000 shares of Entity I, representing 10% of the issued and paid-up share capital of Entity I by MYEGC for a total consideration of RM86,500,000. As at the end of the financial year, unquoted equity investments with carrying amount of approximately RM182,500,000 were transferred from level 2 to level 3 as there is a change in valuation technique from market approach to income approach.
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