NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 39 ACQUISITION OF AND LOSS OF CONTROL IN SUBSIDIARIES, AND CHANGES IN INTERESTS IN SUBSIDIARIES WITHOUT LOSS OF CONTROL (CONT’D) (II) Loss of control in subsidiaries (cont’d) 2022 (cont’d) Note CDLHT Bloomsville Total $’000 $’000 $’000 Sale consideration, net of disposal costs – 80,836 80,836 Distribution in specie 183,124 – 183,124 Non-controlling interest, based on their proportionate interest in the net assets distributed 536,496 – 536,496 Fair value of retained equity interest 426,706 – 426,706 1,146,326 80,836 1,227,162 Carrying amount of net assets disposed (586,645) (53,489) (640,134) Realisation of foreign currency translation reserve (85,302) – (85,302) Gain on disposal of subsidiaries 32 474,379 27,347 501,726 Sale consideration, net of disposal costs – 80,836 80,836 Less: Cash and cash equivalents of subsidiaries disposed (96,408) (837) (97,245) Net cash outflow on disposal of subsidiaries (96,408) 79,999 (16,409) Included in the gain on disposal of CDLHT is a gain on remeasurement of the Group’s retained interest in CDLHT of $331.9 million. In addition, the capital reserve relating to CDLHT of $59.2 million has been reclassified to accumulated profits on its disposal. (III) Changes in interests in subsidiaries without loss of control There were the following changes in interests in subsidiaries without loss of control during the year: 2023 (a) On 12 May 2023, CDL Investments New Zealand Limited (CINZ), an indirect subsidiary of Millennium & Copthorne Hotels Limited, allotted new ordinary shares to its shareholders who had elected to receive their dividend in the form of new shares to CINZ’s dividend reinvestment plan. Following the issuance of the new shares, the Group’s deemed interest in the shares of CINZ decreased from 65.99% to 65.54%. (b) On 15 December 2023, CBM Pte. Ltd., an indirect wholly-owned subsidiary, acquired the remaining 2.1% of the issued share capital of Systematic Laundry & Healthcare Services Pte. Ltd. (SLHS) from an unrelated third party for a consideration of $168,000. Following the acquisition, SLHS became an indirect wholly-owned subsidiary of the Company. 39 ACQUISITION OF AND LOSS OF CONTROL IN SUBSIDIARIES, AND CHANGES IN INTERESTS IN SUBSIDIARIES WITHOUT LOSS OF CONTROL (CONT’D) (III) Changes in interests in subsidiaries without loss of control (cont’d) 2022 (a) In September 2022, the Group’s indirect wholly-owned subsidiary, CBM Pte. Ltd., acquired additional interest in Systematic Holdings Pte. Ltd. via a debt capitalisation of $9.0 million, increasing its effective interest from 90% to 98%. (b) Prior to the Group deconsolidating CDLHT (note (II) above), a subsidiary of M&C, M&C REIT Management Limited (M&C REIT), being the REIT manager for CDLHT, received 4,303,143 units in CDLHT in lieu of management and performance fee income during the year. There was no significant change to the Group’s effective interest in CDLHT between 1 January 2022 to the date of its deconsolidation by the Group. (c) Prior to the Group deconsolidating CDLHT (note (II) above), a subsidiary of M&C, M&C Business Trust Management Limited (MBTM), being a trustee manager for HBT, received 400,301 units in CDLHT in lieu of management fee income during the year. There was no significant change to the Group’s effective interest in CDLHT up until the date of the distribution in specie. (d) CDL Investments New Zealand Limited (CDLI), an indirect subsidiary of M&C, declared dividend in specie to its minority shareholders. There was no significant change to the Group’s effective interest. The following summarises the effect of changes in the Group’s ownership interests in the above subsidiaries: 2023 2022 $’000 $’000 Consideration paid for acquisition of non-controlling interests 168 – Net (increase)/decrease in equity attributable to non-controlling interests (1,260) 959 Net (decrease)/increase in equity interests attributable to owners of the Company (1,092) 959 Represented by: (Decrease)/Increase in capital reserve (1,092) 959 FINANCIALS FINANCIALS ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED 215 214
RkJQdWJsaXNoZXIy ODIwNTc=