Notes on The Accounts (Continued)
10. INTEREST IN ASSOCIATED COMPANIES (Continued)
Pursuant to a shareholders' agreement ("the first 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 first agreement, the cost of the land together with any subsequent modification premium thereon are financed by interest free shareholders' loans in proportion to the shareholders' respective holdings of ordinary shares. At 30th June, 1995, the amount of modification premium paid to the Hong Kong Government for the surrender of two plots of land in exchange for one consolidated site was agreed at $887 million.
The other shareholder has provided a guarantee to a bank in respect of a loan facility of $600 million extended to Swire and Island. ICE has provided an indemnity to the other shareholder for forty percent of this guarantee amounting to $240 million. At 30th June, 1995, the bank loan obtained by Swire and Island under this loan facility amounts to $252 million approximately.
Pursuant to a shareholders' agreement ("the second agreement") entered into between Island Land and its shareholders on 20th November, 1993, Island Land purchased for redevelopment purposes a plot of land from the company for a total consideration of $360 million. In accordance with the terms of the second agreement, the cost of the land together with any subsequent modification premium thereon are financed by interest free shareholders' loan in proportion to the shareholders' respective holdings of ordinary shares. At 30th June, 1995 the amount of modification premium payable is still subject to negotiation with the Hong Kong Government.
Pursuant to a shareholders' agreement ("the third agreement") entered into between Hareton and its shareholders on 29th December, 1994, Hareton purchased for redevelopment purposes two plots of land from the company's subsidiary, Heartwell Limited ("HL"), for a total consideration of $383 million. In accordance with the terms of the third agreement, the cost of land is financed by interest free shareholders' loan in proportion to the shareholders' respective holding of ordinary shares.
11.
INVESTMENTS
Investments listed in Hong Kong, at cost less provision
Market value of listed investments
12. CURRENT ASSETS
The group
1995
1994
$000's
$000's
31
31
2,123
2,465
The group
The company
1995
1994
1995
1994
$000's
$000's
$000's
$000's
Stores and spare parts
63,590
64,870
63,590
64,870
Debtors, deposits and prepayments
21,339
28,181
17,081
25,777
Deposit with Hong Kong Government
2,000
2,000
2,000
2,000
Short term deposits with banks
843,348
1,030,272
310,996
366,896
Cash at bank and in hand
19,532
13,338
13,130
10,500
949,809
1,138,661
406,797
470,043
25