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CONSOLIDATED FINANCIAL REPORT | EXPLANATORY NOTES
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Investments in associates
Information about the nature of the main investments in associates:
Yangtze Optical Fibre and Cable Joint Stock Limited Company, a Chinese company formed in 1988, is a
listed company whose main shareholders are: China Telecommunications Corporation, Wuhan Yangtze
Communications Industry Group Company Ltd. and Prysmian Group. The company is one of the industry's
most important manufacturers of optical fibre and cables. Its products and solutions are sold in more than 50
countries, including the United States, Japan, the Middle East and Africa.
The company was listed on the Main Board of the Hong Kong Stock Exchange in December 2014. Further to
the listing and the related capital increase, the Group's holding fell from 37.5% to 28.12%. Following the
company's new share issue in December 2015, the Group's interest went down to 26.37%. This dilution has
resulted in the recognition of a non-recurring gain of Euro 0.4 million.
At 31 December 2015, the fair value of the investment in Yangtze Optical Fibre and Cable Joint Stock
Limited Company was Euro 200 million, compared with a carrying amount of Euro 129 million.
Yangtze Optical Fibre & Cable (Shanghai) Co. Ltd, formed in 2002 and based in Shanghai (China), is an
associate company 25% of whose share capital is held by the Prysmian Group and 75% by Yangtze Optical
Fibre and Cable Joint Stock Limited Company. The company specialises in the manufacture and sale of
optical fibre and cables, offering a wide range of optical fibre cables and accessories, services and FTTx
solutions.
For Oman Cables Industry SAOG, please refer to Section E. Business Combinations.
Kabeltrommel Gmbh & Co. K.G. is a German company that heads a consortium for the production,
procurement, management and sale of disposable and reusable cable carrying devices (drums). The
services offered by the company include both the sale of cable drums, and the complete management of
logistics services such as drum shipping, handling and subsequent retrieval. The company operates
primarily in the German market.
Elkat Ltd. is based in Russia and manufactures and sells copper conductors; it is the only company certified
by the LME to test copper cathodes for the local market.
The following table reconciles the share of equity in the main associates with the corresponding carrying
amount of the investment: