Annual Report 2021

CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 146 Notes to the Consolidated Financial Statements For the year ended 31 December 2021 19. INTERESTS IN SUBSIDIARIES (a) Composition of the Group Particulars of the Company’s principal subsidiaries at 31 December 2021 are set out in note 42. (b) Exercise of put option issued to non-controlling equity holders of TCP In February 2020, certain non-controlling equity holders of TCP (together with its subsidiaries, the “TCP Group”) (the “Sellers”) exercised put option, pursuant to which the Sellers have the right to sell to, and require the Group to acquire all of the Sellers’ remaining equity interest of the TCP Group in total of 845,703 shares at a cash consideration. During the year ended 31 December 2020, the Group made payment amounting to US$107 million (equivalent to approximately HK$835 million) to the Sellers and the Sellers simultaneously completed the transfer of the shares to the Group, free and clear of any liens. The Group’s effective interest in TCP increased from 67.45% to 77.45% immediately after the transaction. (c) Disposal of interests in Gainpro Resources Limited (“Gainpro”) without losing control In June 2020, the Company entered into a share transfer deed, pursuant to which the Company has agreed to disposed of its 23.52941% interest in, and 23.52941% of the shareholder’s loan advanced by the Company to, Gainpro (together with its subsidiaries, the “Gainpro Group”), a wholly-owned subsidiary of the Company whose principal asset was its interest in 85% of the issued share capital of Hambantota International Port Group (Private) Limited (“HIPG”, together with its subsidiary, the “HIPG Group”) to an independent third party, for a total cash consideration of US$268 million (equivalent to approximately HK$2,077 million). The Group’s effective interest in HIPG decreased from 85% to 65% after the disposal. An amount of HK$1,704 million, being the proportionate share of the carrying amount of the net liabilities of the Gainpro Group and the shareholder’s loan assigned, had been transferred to non-controlling interests. The difference of HK$373 million between the increase in the non-controlling interests and the consideration received had been credited to relevant reserves.