Wah Seong Corporation Berhad Annual Report 2020

137 ANNUAL REPORT 2020 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 9 INVESTMENT IN SUBSIDIARIES (CONTINUED) f On 24 June 2019, Syn Tai Hung Trading Sdn. Bhd. (“STHT”), an indirect wholly-owned subsidiary of the Company, had acquired 30,000 and 60,000 ordinary shares, representing 10% and 20% equity interest respectively in the issued and paid-up share capital of Syn Tai Hung (Cambodia) Co., Ltd. (“STH Cambodia”) from Petro-Pipe Engineering Services Sdn. Bhd., an indirect wholly-owned subsidiary of the Company and Mr Okhna Ing Veasna for a total nominal consideration of USD100 and USD200 respectively. Upon completion of the acquisition of STH Cambodia shares, STH Cambodia became an indirect wholly- owned subsidiary of the Company, held through STHT. e On 12 June 2019, Wasco CPM Sdn. Bhd. (“Wasco CPM”), an indirect 51% owned subsidiary of the Company, had acquired 9,500 ordinary shares, representing 95% of equity interest in the total number of issued and paid- up share capital of Eco Consortium Sdn. Bhd. (“ECSB”), for a total consideration of RM1. Upon completion of the acquisition of ECSB shares, ECSB became an indirect 48% owned subsidiary of the Company, held through Wasco CPM. Although the Company does not own more than 50% of the equity shares of ECSB and consequently it does not control more than half of the voting power of those shares, it has the power to appoint and remove the majority of the Board of Directors of ECSB as such control of these entities is by the Company. Consequently, ECSB is controlled by the Company and is consolidated in these financial statements. d On 28 February 2019, Asiana Emas Sdn. Bhd. (“AESB”), an indirect wholly-owned subsidiary of the Company, had increased its equity interest in Petro-Pipe (Sabah) Sdn. Bhd. (“PPS”) from 60% to 70% following the Renounceable Rights Issue Exercise undertaken by PPS of 10,000,000 ordinary shares issued at RM2.00 each. The Renounceable Rights Issue shares was issued and allotted proportionately to PPS’s existing shareholders, namely AESB and Sabah Energy Corporation Sdn. Bhd. (“SEC”) which SEC had renounced in totality. c On 15 December 2017, PMT-Phoenix Industries Sdn. Bhd. (“PMT-Phoenix”), an indirect wholly-owned subsidiary of the Company had at its Extraordinary General Meeting inter-alia, approved the special resolution to wind up PMT-Phoenix by way of Member’s Voluntary Winding Up. As a result, the Group no longer controls the subsidiary and as such it was not consolidated. b On 18 November 2015, Syn Tai Hung Corporation Sdn. Bhd. (“STHC”), an indirect wholly-owned subsidiary of the Company, had at its Extraordinary General Meeting inter-alia, approved the special resolution to wind up STHC by way of Member’s Voluntary Winding Up. As a result, the Group no longer controls the subsidiary and as such it was not consolidated. STHC had held its final meeting for the Member’s Voluntary Winding Up and was fully dissolved. a On 7 March 2012, PT. MPE Deepwater (“PT. MD”), an indirect subsidiary of the Company, had at its Extraordinary General Meeting, inter-alia, approved the special resolutions to wind up the company by way of Member’s Voluntary Winding Up. As a result, the Group no longer controls the subsidiary and as such it was not consolidated. On 7 December 2020, PT. MD, had completed the voluntary liquidation in accordance with the rules and regulations of the Republic of Indonesia. p Although the Company does not own more than 50% of the equity shares of Wasco Oilfield Services Sdn. Bhd. (“WOS”), Wasco Lindung Sdn. Bhd. (“WL”) and Eco Consortium Sdn. Bhd. (“ECSB”), and consequently it does not control more than half of the voting power of those shares, it has the power to appoint and remove the majority of the Board of Directors of WOS, WL and ECSB as such control of these entities is by the Company. Consequently, WOS, WL and WCSB are controlled by the Company and are consolidated in these financial statements. Subsequent event On 4 March 2021, Wasco Management Services S.R.L., an indirect wholly-owned subsidiary of the Company, had completed the voluntary liquidation and was cancelled from the Chamber of Commerce of Milan Brianza Lodi, in accordance with the rules and regulations of the Companies Act in Italy. On 11 February 2021, WSN Investments Limited, an indirect wholly-owned subsidiary of the Company, was deregistered pursuant to Section 751 of the Companies Ordinance in Hong Kong.