298 WASCO BERHAD SECTION 6 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025 34 CHANGES IN EQUITY INTEREST IN A SUBSIDIARY WITHOUT LOSS OF CONTROL On 20 June 2025, CIMB Investment Bank Berhad (“CIMB”), on behalf of the Board of Directors, announced the proposed listing of the Company’s subsdiary, Wasco Greenergy Berhad (“Wasco Greenergy”) on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) via an initial public offering (“IPO”). On 28 October 2025, Wasco Greenergy completed the acquisition of 1,000,000 ordinary shares representing 40% equity interest in its subsidiary, Wasco Thermal Sdn. Bhd. (“Wasco Thermal”) from Tema Energy Ventures Sdn. Bhd. (“Tema Energy”) for a total purchase consideration of RM19,301,360. The purchase consideration was satisfied through the issuance of 14,404,000 new ordinary shares in Wasco Greenergy at an issue price of RM1.34 per ordinary share (“Acquisition”). Following the completion of the Acquisition, the Company’s equity interest in Wasco Greenergy was reduced from 100% to 89% with the remaining 11% held by Tema Energy. Subsequently, Wasco Greenergy undertook a bonus issue of 295,596,000 new ordinary shares to its existing shareholders on the basis of 3.3 new bonus shares for every 1 existing ordinary share held. In conjunction with its listing, Wasco Greenergy undertook (i) the offer for sale of 75,000,000 existing ordinary shares collectively held by the Company and Tema Energy, and (ii) a public issue of 75,000,000 new IPO shares at an issue price of RM1 per share, resulting in a total of 150,000,000 ordinary shares being offered, representing 30% of the enlarged issued share capital of Wasco Greenergy. All the new ordinary shares issued in conjunction with the Acquisition and listing during the financial year ranked pari passu in all respects with the existing ordinary shares of the Company. On 11 December 2025, Wasco Greenergy was listed on the Main Market of Bursa Malaysia. Accordingly, the equity interest held by the Company was further diluted to 63% in Wasco Greenergy. The Company retains control and continues to consolidate Wasco Greenergy and its subsidiaries with 37% equity interest in the Group financial statements as a non-controlling interest. Pursuant to MFRS 10 ‘Consolidated Financial Statements’, changes in the ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the controlling and noncontrolling interests were adjusted to reflect the changes in their relative interests in the subsidiary, with any difference between the amount by which the non-controlling interests is adjusted and the fair value of the consideration received recognised directly in equity attributable to owners of the Company.
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