118.
INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
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For the financial year ended 31 December 2015
19.
INVESTMENT IN ASSOCIATE COMPANIES (CONT’D)
Name of associate
Country of
incorporation Principal activities
Effective percentage
of equity held
%
2015
2014
Held by the Company
FP Natural Resources Limited
(“FPNRL”)
(i)
British Virgin
Islands
Investment Holdings
30.00
30.00
Held by Agri Investment Pte Ltd
Heliae Technology Holdings, Inc
(“Heliae”)
(ii)
USA
Agricultural technology and
cultivation business
8.93 * 10.99 *
Held by PT PP London Sumatra
Indonesia Tbk
Asian Assets Management Pte. Ltd.
(“AAM”)
(ii)
Singapore Investment in property business 21.85
–
Held by PT Salim Ivomas Pratama Tbk
PT Prima Sarana Mustika
(“PT PSM”)
(iii)
Indonesia Construction services, rental of
heavy equipment and trading of
agriculture equipment
29.38
29.38
*
The Group held less than 20% effective shareholdings in certain associates but owned, directly and indirectly, more than 20% shareholdings
in these associates.
(i)
Audited by Ernst & Young (HK)
(ii)
Audited by PricewaterhouseCoopers LLP, Arizona
(iii)
Audited by Paul Hadiwinata, Hidajat, Arsono, Ade Fatma & Rekan, Indonesia (member firm of Grant Thornton International)
FP Natural Resources Limited (“FPNRL”)
FPNRL is an investment holding company which in turn owns 50.9% and 16.4% interest in Roxas Holdings Inc (“RHI”)
and Victoria Milling Company Inc.(“VMC”) respectively. RHI and VMC are engaged in processing of sugar cane for the
production and marketing of sugar and ethanol in the Philippines.
Heliae Technology Holdings, Inc. (“Heliae”)
During the year, AIPL’s equity interest in Heliae was diluted to 20.42% (2014: 25.14%) due to additional capital
contribution by the other shareholders. Heliae is a private entity engaged in technology and production solutions for
the algae industry.
Capital injections during the year
In March 2014, AIPL subscribed for convertible notes of US$5.0 million (approximately Rp62.2 billion) issued by Heliae
Development, LLC, a subsidiary of Heliae. The convertible notes earn an interest of 3% plus the one-month London
Interbank Offered Rate (LIBOR) rate. The convertible notes can be converted into the common shares of Heliae within
5 years from the date of issue. The convertible notes do not contain derivative as their value is fixed to the value of
the shares and requires considerable investment on initial subscription. In 2015, this convertible note together with
its interest amounting to US$5.1 million were converted into 1,474,853 shares of common stocks of Heliae at the fair
market value on the date of conversion approximately Rp64.0 billion.
In October 2015, AIPL injected additional capital of US$3.0 million (approximately Rp 40.8 billion) in Heliae.
