NOTES TO THE FINANCIAL STATEMENTS Cont’d 8. Investments in associates cont’d 8.1 ICULS together with free detachable warrants In June 2018, the Company subscribed in full its 27.72% entitlement on the Rights Issue of ICULS together with free detachable warrants issued by PMB Technology Berhad (“PMBT”) for a total cash consideration of RM58,844,000. The salient features of the ICULS together with free detachable warrants are as follows: i) The ICULS will be maturing in 2023 and the coupon rate for the ICULS is 3% per annum; ii) The ICULS has a nominal value of RM2.74 each and is convertible to ordinary shares of PMBT at a price of RM2.74 per share; iii) The ICULS has a conversion ratio of 1:1, convertible any time from the date of issuance up to the maturity date. Any ICULS not converted by maturity date will be mandatorily converted to ordinary shares of PMBT upon maturity; and iv) The exercise price of the warrants is RM3.01, exercisable from the date of issuance up to market day falling immediately before the fifth anniversary of the date of the issuance of the warrants. The Directors have assessed that the ICULS together with free detachable warrants form part of the investment in PMBT as they give current access to the returns associated with the associate. During the current financial year, 53,689,895 warrants were exercised by the Company at the price of RM0.60. This has resulted in an increase of the investments in PMBT by RM32,214,000. No ICULS were converted by the Company during the financial year. 8.2 Security At 31 December 2022, 3,452,783 shares (2021: 3,452,783 shares) of PT BAI were pledged as security to secure bank facilities granted to the Company (see Note 17). Details of the material associates are as follows: Name of entity Principal place of business/ Country of incorporation Nature of the relationship Effective ownership interest and voting interest 2022 2021 % % PMB Technology Berhad (“PMBT”) Malaysia Trading of aluminium products with the Group 22 20 Shandong Sunstone & PMB Carbon Ltd., Co. (“Sunstone”) China Manufacturing of pre-baked carbon anodes for consumption of the Group 20 20 PT Bintan Alumina Indonesia (“PT BAI”) Indonesia Manufacturing of alumina for consumption of the Group 25 25 PRESS METAL ALUMINIUM HOLDINGS BERHAD 249
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