NIG Prospectus - London Stock Exchange

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:20 pm – mac5 – 3776 Section 10b : 3776 Section 10bA full independent valuation of all freehold properties held by NIC Holding (Guernsey) and NIG(Guernsey) Limited was obtained as at 1 January 1999 and the valuation was incorporated into theconsolidated financial statements. The directors of the group consider that there has been nosignificant change in the market value since the last valuation of these properties.Property on leasehold land, plant and machinery with a net book value of KD1,271 thousand aresecured against the Musharaka bonds (see Note 24).Property under construction represents the cost incurred on the expansion of one of thesubsidiaries existing factories and the construction of a new office building for the samesubsidiary. This amount will be transferred to the appropriate asset categories when the assets areready for their intended use.11 Investment in associatesThe significant associates of the group as at 31 December 2006 and 2005 are as follows:Percentageownership111122311112200611112200511112Kuwait Ceramic Factory Company – WLL ................................................ 49% 49%Kuwait Rocks Company – SAK (Closed)...................................................... 38% 38%KES Power Ltd. .......................................................................................... 40% 40%Kuwait Privatization Project Holding Company – SAK (Closed) .................. 28% 28%Al Raya International Real Estate – KSC (Closed) ...................................... 23% 23%Kuwait Cement Company – SAK (Closed) .................................................. 22% 22%Marsa Alam Holding Company – KSC (Closed) .......................................... 20% 20%Eastern United Petroleum Services Company – KSC (Closed) .................. 20% 20%Kuwait National Real Estate Investment and Services Company– KSC (Closed) ........................................................................................ 16% 16%All of the above associates are registered in Kuwait except for KES Power Ltd., which is registeredin the Cayman Islands.Significant influence in Kuwait National Real Estate Investment and Services Company – KSC(Closed) is demonstrated by representation of two directors of the group on the board of directorsof each of the investee’s.Disposal during 2005:a. The group disposed 4% of its stake in its 20% owned associate, Kuwait National Real EstateInvestment and Services Company – KSC (Closed), for a cash consideration of KD4,131thousand resulting in a profit of KD2,302 thousandb. The group disposed 3% of its stake in its 31% owned associate, Kuwait Privatization ProjectHolding Company – SAK (Closed), for a cash consideration of KD4,597 thousand resulting ina profit of KD2,910 thousand.c. The group disposed 35% of its investment in, Mabanee Company SAK (Closed), for a cashconsideration of KD95,550 thousand, resulting in a profit of KD70,286 thousand.F-35