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Dar Al-Maal Al-Islami Trust
Annual Report 2014
Notes to the Consolidated Financial Statements
(Thousands of US dollars)
15. Investments in
associates
2014
2013
At 1 January
967,549
958,649
Share of results before tax
51,390
125,693
Share of tax
(15,410)
(44,160)
Dividends paid
(19,389)
(17,355)
Share of fair value gains/(losses)
1,726
5,624
Additions
-
8
Disposals
(256,173)
(32,661)
Recycling of reserves on disposal
(11,764)
-
Transfer to investment securities
(5,156)
-
Amortisation of intangibles
(6,749)
(6,749)
Exchange differences
(9,674)
(21,500)
At 31 December
696,350
967,549
Investment in associates included $261.8 million (2013: $462.5 million)
pledged as collateral against borrowings (note 23) with the terms and
conditions in the ordinary course of business.
Set out below are the associates of the Group as at 31 December 2014, which,
in the opinion of the Group, are material. The associates as listed below have
share capital consisting solely of ordinary shares, which are held directly by a
subsidiary of the Group; the country of incorporation or registration is also their
principal place of business.
Nature of investment in associates
Place of
% of
% of
business/country ownership ownership Measurement
Entity
of incorporation subsidiary
Group
method
2014
BBK B.S.C.
Bahrain
25
12
Equity
Solidarity Group
Holding B.S.C. (c)
Bahrain
34
16
Equity
2013
Faisal Islamic Bank
of Egypt
Egypt
49
49
Equity
BBK B.S.C.
Bahrain
25
13
Equity
Solidarity Group
Holding B.S.C. (c)
Bahrain
34
17
Equity
Faisal Islamic Bank of Egypt, an Egyptian joint stock company, provides retail,
corporate banking services and investment activities in the Arab Republic of
Egypt and abroad and is listed on the Cairo and Alexandria Stock Exchange.
In 2014, DMI disposed 47.52% of the investment in Faisal Islamic Bank of
Egypt (FIBE) to Islamic Investment Company of the Gulf (Bahamas) Limited
Funds Under Management, a related party. The net consideration of the sale
was $387 million, which is comprised of $637 million as per the sales and
purchase agreement, less $250 million of the receivable from the purchaser that
was concurrently released. As a result of this transaction, FIBE ceased to be
an investment in an associated company and the remaining shares held were
classified as investment securities available-for-sale, as the Group no longer
has significant influence over the entity.