Notes on The Accounts (Continued)
10. INTEREST IN SUBSIDIARY
Unlisted shares, at cost
Amount due from subsidiary
Details of the subsidiary are as follows:-
Name of company
Island Communication Enterprises Limited
11. INTEREST IN ASSOCIATED COMPANY
Unlisted shares, at cost
Loans to associated company
Country of incorporation and operation
Hong Kong
Issued ordinary share capital
$138,804,768
Percentage
directly held
100%
1992
1991
$000's
$000's
473,581
7,887
1,624
227
475,205
8,114
Principal
activity
Investment holding
The group
1992
1991
$000's
$000's
1
402,944
402,945
Details of the associated company, which is incorporated in the British Virgin Islands, are as follows:-
Name of company
Swire and Island Communication
Developments Limited
("Swire and Island")
Percentage of shares held
Ordinary shares 40%
Non-voting dividend shares
100%
Principal activity
Property development for resale and
investment
Pursuant to a shareholders' agreement ("agreement") entered into between Swire and Island and its shareholders on 6th November, 1991, Swire and Island purchased for redevelopment purpose two plots of land respectively from the
company and its subsidiary, Island Communication Enterprises Limited ("ICE") for a total consideration of $980 million. In accordance with the terms of the agreement, the cost of land together with any subsequent modification premium thereon are financed by interest free shareholders' loans in proportion to the shareholders' respective holding of ordinary shares. At 30th June, 1992, the amount of modification premium payable is still subject to negotiation with the Hong Kong Government.
ICE also guarantees the repayment by the associated company in respect of its forty per cent share of any additional advances made by the other shareholder for the purpose of financing the redevelopment project, which at 30th June, 1992 amounts to $3.2 million approximately.
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