NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
18 ASSOCIATES AND JOINT VENTURES
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Associates
409,622
385,697
2,708
3,585
Joint ventures
18,570
33,044
–
–
428,192
418,741
2,708
3,585
18.1 ASSOCIATES
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Quoted shares, at cost
293,273
293,273
–
–
Share of post-acquisition reserves
11,769
567
–
–
305,042
293,840
–
–
Unquoted shares, at cost
43,305
44,592
2,708
3,585
Shareholder loans (c)
71,910
60,000
–
–
Share of post-acquisition reserves
(4,265)
(6,114)
–
–
Exchange adjustment
(1,387)
(1,228)
–
–
109,563
97,250
2,708
3,585
Impairment loss
(4,983)
(5,393)
–
–
104,580
91,857
2,708
3,585
409,622
385,697
2,708
3,585
Market value of quoted shares
288,830
316,014
–
–
(a)
Details of associates are included in note 47.
(b)
On 29 November 2013, the Group acquired 20.1% stake in ARA Asset Management Limited (”ARA”) for total value
of $293.3 million paid in a combination of cash and the Company’s shares. The shares in ARA are mortgaged to
secure bank facilities (note 32).
(c)
On 15 April 2013, the Group entered into a Joint Venture Implementation Agreement with Far East Orchard Limited
(“FEOrchard”) to establish a 30/70 joint venture, known as Far East Hospitality Holdings Pte. Ltd. (“FEHH”) to pursue
and conduct hospitality management and hospitality-related businesses, and investments in real estate used
primarily for hospitality purposes. The shareholder loans to FEHH are unsecured and non-interest bearing.
(d)
WBL Corporation Limited (“WBL”) became an associate of the Group consequent to a share swap in January 2013,
and the entire stake in WBL was disposed in the same year. Please refer to note 21 for further information.
(e)
Impairment assessment
During the financial year, the Group carried out a review of the recoverable amount of its investment in Guilin Hinwei
Tin Co Ltd. A reversal of impairment of $410,000 was recognised in profit or loss of the Group. The recoverable
amount was based on fair value less costs to sell.
109
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
