NOTES TO THE FINANCIAL STATEMENTS Cont’d 33. Business combinations cont’d 2021 33.2 Partial disposal of interest in a subsidiary In June 2021, the Group, via its wholly-owned subsidiary, Press Metal (HK) Limited disposed of 7.6% equity interest in a subsidiary, Press Metal International Limited (“PMI”) to third parties for a total cash consideration of RMB40,190,000 (equivalent to approximately RM26,408,000), decreasing its ownership in PMI and its direct subsidiaries (“collectively known as PMI subgroup”) from 100.0% to 92.4%. The carrying amount of PMI subgroup’s net assets in the Group’s financial statements on the date of disposal was RM629,658,000. The Group recognised an increase in non-controlling interests of RM47,854,000 and a decrease in retained earnings of RM21,446,000. 34. Interest in joint operation The Group has a 50% (2021: 50%) ownership interest in a joint operation, Japan Alumina Associates (Australia) Pty. Ltd. (“JAA”) with Sojitz Corporation. JAA’s principal place of business is in Australia. JAA markets the share of alumina produced through its participation in a bauxite mine and an alumina refinery and is strategic for the Group in ensuring its long-term access to raw material which reduces its exposure and reliance on third party suppliers. The Group and Sojitz Corporation have equal board representatives in JAA and all relevant decisions require unanimous votes from the shareholders. Based on the shareholders’ agreement, the Group and Sojitz Corporation are entitled to the outputs produced by JAA in proportion to their respective shareholdings in JAA. In view that the Group has rights to the assets, and obligations for the liabilities relating to JAA, therefore the investment in JAA is accounted for as a joint operation. PRESS METAL ALUMINIUM HOLDINGS BERHAD 311
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