CMB_1992 — Page 22

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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