2020 UEM Edgenta Annual Report

16. INVESTMENT IN SUBSIDIARIES Company RM’000 2020 2019 Unquoted shares, at cost: - Malaysian subsidiaries 2,162,421 2,134,211 - Foreign subsidiaries 86,795 86,795 2,249,216 2,221,006 Less: Accumulated impairment (a) (560,993) (513,393) 1,688,223 1,707,613 Certain unquoted shares in subsidiaries are pledged to financial institutions for facilities granted to the Group and the Company as disclosed in Note 27(a). Further details of the subsidiaries are disclosed in Note 43. a. Impairment of investment in subsidiaries D uring the current financial year, an impairment loss of RM47.6 million (2019: RM78.0 million) was recognised against the carrying amount of its investment in Opus Group Berhad (“OGB”) to its recoverable amount. Based on management’s assessment, the recoverable amount of its investment in OGB was RM636.0 million (2019: RM683.6 million) which was estimated based on the value-in-use of OGB. b. Acquisition of non-controlling interest in Edgenta GreenTech Sdn. Bhd. (“EGT”) O n 16 December 2015, the Company had entered into a put option agreement with the non-controlling interest of EGT, to purchase its 20% equity interest in the entity. The Company at that time had 80% direct equity interest in EGT. O n 14 November 2019, the non-controlling interest of EGT has issued a notice to exercise the put option granted on its 20% shareholding in the entity at a total purchase price of RM28,209,686. T he transaction was completed on 25 June 2020 upon approval from Unit Kerjasama Awam Swasta (“UKAS”) under the Ministry of Finance. As a result, EGT became a wholly-owned subsidiary of the entity. c. Members’ voluntary winding-up of Faber Hotels Holdings Sdn. Bhd. (“FHH”) O n 6 March 2019, FHH, a wholly-owned subsidiary of the Company, had been placed under Member’s Voluntary Winding-Up pursuant to Section 439(1)(b) of the Companies Act 2016. The winding up of FHH did not have a material effect on the earnings, gearing or net assets of the Group. d. Members’ voluntary winding-up of Pengurusan LRT Sdn. Bhd. (“PLRT”) O n 1 August 2019, PLRT, an indirect wholly-owned subsidiary of the Company, had been placed under Member’s Voluntary Winding-Up pursuant to Section 439(1)(b) of the Companies Act 2016. The winding up of PLRT was completed during the year and did not have a material effect on the earnings, gearing or net assets of the Group. UEM EDGENTA BERHAD 246 Financial Statements NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020