Singapore Airlines 2016 Annual Report Download - page 176

Notes to the Financial Statements
31 March 2016
23 Subsidiary Companies (in $ million) (continued)
(g) Changes in ownership interests in subsidiary companies
Acquisition of non-controlling interests without a change in control
FY2015/16
The Company announced on 6 November 2015 a Voluntary Conditional General Oer (the “Oer”) for the shares in Tiger Airways that the
Company does not already own for a consideration comprising $0.41 per Tiger Airways’ share (the “Oer Price”) and options to subscribe
for the Company’s shares, conditional upon the Company owning more than 90% of Tiger Airways by the close of the Oer. On 4 January
2016, the Oer Price was revised to $0.45 per share (the “Final Oer Price”). On 11 January 2016, the Company announced the waiver of
the acceptance condition, and declared the Oer unconditional. Shareholders who accept the Oer would be paid the Final Oer Price
of $0.45 per share, and issued a letter of grant in relation to the options to subscribe for the Company’s shares, within ten days of their
valid acceptances being received.
As a result of the Oer, the Group granted 44,412,941 equity-settled share-based payment options with contractual lives ranging from 38
days to 89 days from the vesting date. An amount of $19.2 million in relation to the valuation of the option to subscribe was recorded in
the share-based compensation reserve (Note 16).
The following summarises the eect of the changes in the Group’s ownership interests in Tiger Airways on the equity attributable to
owners of the Company.
Consideration paid for acquisition of non-controlling interests 458.5
Decrease in equity attributable to non-controlling interests (124.0)
Decrease in equity attributable to owners of the Company 334.5
FY2014/15
On 16 May 2014, the Group completed the restructuring of one of its subsidiary companies, Singapore Jamco Pte Ltd (“SJAMCO”). As part
of the restructuring, a new company, Singapore Jamco Services Pte Ltd (“SJAMCO Services”) was incorporated with the same shareholding
interest as SJAMCO. SJAMCO then transferred a part of its existing business to SJAMCO Services. Following the transfer, the Group disposed
of 45% of SJAMCO and acquired an additional 15% interest in SJAMCO Services. Consequently SJAMCO became an associated company
upon the disposal of its interest.
On 5 December 2014, the Company converted its 189,390,367 non-voting perpetual convertible capital securities into new Tiger Airways
shares, resulting in an increase in equity interest of 3.8%, from 52.0% to 55.8%.
The following summarises the eect of the changes in the Group’s ownership interests in SJAMCO Services and Tiger Airways on the equity
attributable to owners of the Company.
Consideration paid for acquisition of non-controlling interests –
Decrease in equity attributable to non-controlling interests (2.5)
Decrease in equity attributable to owners of the Company (2.5)
On 7 January 2015, Tiger Airways issued 1,147,102,770 ordinary shares, pursuant to a rights issue, on the basis of 85 Rights Share for every
100 existing ordinary shares held, at an issue price of $0.20 for each Rights Share with net proceeds of $227.4 million. Accordingly, rights
shares of $100.5 million was allotted to the non-controlling interests of Tiger Airways.
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