Yinson Annual Report 2020

320 Notes to the financial statements (cont’d) For the financial year ended 31 January 2020 Yinson Holdings Berhad SECTION 7 ACCOUNTABILITY 47. Summary of effects of dilution and disposal of companies 2019 (a) On 6 June 2018, Yinson Trillium Limited (“YTL”), a wholly owned subsidiary of the Company, completed the disposal of 26% equity interest in Yinson Production (West Africa) Pte. Ltd. (“YPWAPL”) to Japan Sankofa Offshore Production Pte. Ltd. for a maximum cash consideration of USD117 million, subject to price adjustment. As a result, the Group’s effective equity interest in YPWAPL has reduced from 100% to 74%. (b) On 31 December 2018, Yinson Dynamic Ltd, an indirect wholly owned subsidiary of the Group, completed the disposal of its entire 49% equity interest in each of OY Genesis Ltd (“OYGL”), OY Jasper Ltd (“OYJL”) and OY Topaz Ltd (“OYTL”) for a total cash consideration of USD3. As a result, OYGL, OYJL and OYTL ceased to be associates of the Group. Below are the effects of the disposal for item (a) on the financial position and the cash flows of the Group: RM’000 Property, plant and equipment 926,190 Trade and other receivables 47,186 Cash and bank balances 118,826 Trade and other payables (116,342) Loans and borrowings (680,766) Derivative liabilities (4,589) Tax payables (22) Share of net assets disposed 290,483 Gain on disposal (recognised to equity) 175,861 Sales consideration (net of transaction cost) 466,344 Add: Direct expenses attributable to the disposal 2,681 Less: Sales consideration yet to receive (53,239) Net cash inflow from disposal 415,786 48. Subsequent events (a) On 20 February 2020, Aker Energy Ghana Limited (“Aker Energy”) has issued a Letter of Intent (“LOI”) dated 20 February 2020 to (i) Yinson Production West Africa Limited (“Yinson West Africa”, being the bidding entity and an indirect joint venture entity of the Company); (ii) Yinson Gazania Production Ltd (“YGPL”, being the FPSO owner and an indirect subsidiary of the Company); and (iii) Yinson Gazania Operations Limited (“YGOL”, being the operation and maintenance contractor and an indirect joint venture entity of the Company) for the proposed award of: (i) a bareboat charter party agreement (“Bareboat Charter”) to YGPL for the provision of a FPSO at the Deepwater Tano/Cape Three Points (“DWT/CTP”) contract area, offshore of Ghana (“Field”); and (ii) an operation and maintenance agreement (“O&M Agreement”) to YGOL. The LOI has been accepted and entered into by Yinson West Africa, YGPL and YGOL on 20 February 2020.