Singapore Airlines 2001 Annual Report Download - page 86

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84 SIA annual report 00/01
Notes to the Financial Statements
31 March 2001
17 Associated Companies (in $ million)
The Group The Company
31 M arch 31 M arch
2001 2000 2001 2000
Investment in associated companies (at cost)
Quoted equity investment 403.4 – 403.4 –
Unquoted equity investments 1,909.7 1,833.9 1,698.2 1,668.1
2,313.1 1,833.9 2,101.6 1,668.1
Writedown for diminution in value/losses (25.6) (12.7) (9.4) –
2,287.5 1,821.2 2,092.2 1,668.1
Goodwill written-off (1,706.3) (1,590.7) – –
Share of post acquisition profits less losses of
associated companies 113.0 60.5 – –
694.2 291.0 2,092.2 1,668.1
Loans to associated companies 20.7 13.8 7.2 –
Amounts owing by associated companies 0.5 0.9 – –
715.4 305.7 2,099.4 1,668.1
Market value of quoted equity investment 192.5 – 192.5 –
The Company acquired a 25.0% equity interest in Air New Zealand Limited (ANZ), in two tranches of 8.3% in April 2000 and
16.7% in August 2000, at an aggregate cost of $352.0 million. Goodwill arising from the acquisition amounted to $93.4 million.
In November 2000, the Company subscribed for additional shares in ANZ for $51.4 million pursuant to a rights issue, bringing the
total investment in ANZ to $403.4 million.
The Company previously extended a $37.5 million convertible loan to a third party in connection with the development of a hotel.
During the financial year, $30.3 million of the loan was converted into a 20.0% equity interest in Ritz-Carlton, Millenia Singapore
Properties Private Limited. A $9.4 million provision previously made on this investment has also been reclassified to associated
companies.
SIA Engineering Company Limited acquired a 30.0% equity interest in Rohr Aero-Services-Asia Pte Ltd on 29 March 2001 and 40%
equity interest in Messier Services Asia Pte Ltd on 7 July 2000, at a cost of $26.1 million and $14.0 million respectively. Goodwill
arising from these acquisitions amounted to $22.2 million.
At Group level, the total goodwill of $115.6 million was written-off against the general reserve.
Loans to associated companies are unsecured and bear interest at prevailing market rates.
Amounts owing by associated companies are trade-related and are interest free.