Singapore Airlines 2016 Annual Report Download - page 170

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Notes to the Financial Statements
31 March 2016
23 Subsidiary Companies (in $ million)
The Company
31 March
2016 2015
Investment in subsidiary companies 3,331.6 2,846.3
Accumulated impairment loss (52.7) (52.7)
3,278.9 2,793.6
Long-term loans to a subsidiary company 1,182.0 571.1
4,460.9 3,364.7
During the financial year:
1. The Company announced a Voluntary Conditional General Oer (the “Oer”) for the shares in Tiger Airways that the Company does not
already own. The Company invested an additional of $477.7 million in Tiger Airways. Further details are disclosed in Notes 23(g) and 42.
2. The Company divested its 56.0% shareholdings in Abacus Travel Systems Pte Ltd (“ATS”) for a consideration of USD5.6 million ($7.5 million).
Following the divestment, ATS is no longer a subsidiary company of SIA.
3. The Company extended a two-year unsecured loan to Scoot Pte. Ltd. (“Scoot”). The maturity date of the loans, including the loan from
last year, was extended by one year to September 2017. Interest on the loans is computed using SGD swap-oer rates, plus an agreed
margin. The loans are denominated in SGD and interest rates ranged from 1.45% to 2.57% per annum (FY2014/15: 1.45% to 2.30%). The
carrying amount of the loans approximates the fair value as interest rates implicit in the loan approximate market interest rates.
4. SIAEC invested approximately $0.3 million and $2.7 million in NexGen Network (1) Holding Pte Ltd (“NGN1”) and NexGen Network (2)
Holding Pte Ltd (“NGN2”) respectively.
5. SIAEC invested approximately $2.8 million in SIA Engineering (Philippines) Corporation (“SIAEP”).
6. Tiger Airways incorporated a wholly-owned subsidiary, Simple Holidays Pte. Ltd., with a share capital of $250,000 consisting of 250,000
ordinary shares. Tiger Airways also subscribed to an additional 299,000 shares at $1.00 each in the capital of Roar Aviation III Pte. Ltd.
Singapore Airlines168
FINANCIAL