14 Investments
The group’s other investments mainly comprise a 15.0 per cent shareholding in Northern Gas Networks Holdings Limited. The group also holds an overall 11.7 per cent shareholding in Manila Water Company. In the opinion of the directors, there is no material difference between the book and fair values of these investments. The fair values of the group’s financial instruments are shown in note 19.
During the prior year, the group accounted for its investment in THUS Group plc as an associate in accordance with IAS 28 ‘Investments in Associates’ and applied equity accounting. The group’s share of post-acquisition results for the period to disposal on 19 June 2007 (see note 8) has not been separately disclosed in the income statement or the statement of recognised income and expenditure on the grounds of materiality.
Details of principal operating subsidiary undertakings and joint ventures are set out below. These undertakings are included within the consolidated financial statements.
A full list of the company’s subsidiary undertakings is included within the company’s annual return, as filed with the Registrar of Companies.
In relation to the group’s interests in joint ventures, the assets, liabilities, gross income and expenses are summarised below:
The joint ventures have no significant contingent liabilities to which the group is exposed and the group has contingent liabilities of £80.7 million in relation to its interests in the joint ventures (2008: £78.0 million).
The additions of £6,326.8 million represent the company’s investment in United Utilities PLC, acquired on 28 July 2008. The value of the investment on acquisition has been based upon the closing share price of United Utilities PLC on 25 July 2008. In addition, the company also acquired 1 deferred A share in United Utilities PLC on 23 July 2008 for £1.00.
United Utilities PLC, and its subsidiary undertakings, are exposed to credit, liquidity and market risks, the details of which are found in note 19. Movements or variations in these risk factors will cause changes in the value of United Utilities PLC and the company’s investment in that entity, which in turn could require an impairment charge.