Significant investments
The Group also had interest in a subsidiary, Sinonet Holdings Limited, whose principal assets consisted of an associate, Silverlink Holdings Limited and 37.736% participation rights under a US$79.5 million Note. Such interest was reclassified as assets classified as held for sale and its carrying value was HK$517 million.

Net gain on remeasurement of assets classified as held for sale
Net gain represents write back of provision for impairment losses on an associate, Silverlink Holdings Limited (an associate of Sinonet Holdings Limited). During the year, the Group decided to dispose of its entire interest in a subsidiary, Sinonet Holdings Limited and reclassified it as assets classified as held for sale. On 16 November 2007, the Company entered into the Sale and Purchase Agreement with the purchaser in relation to the sale of its entire interest in Sinonet Holdings Limited for a consideration of US$105.45 million (HK$822.51 million). The disposal was approved by the shareholders of the Company on 21 January 2008 and resulted in a gain of approximately HK$460 million.

sold our stake in Amanresorts for US$105 million. This transaction resulted in a gain of approximately HK$460 million after write-back of provision for impairment losses of HK$86 million, which will only be booked into our 2008 accounts.

Assets classified as held for sale
HK$’000
234,688 Associate
265,424 Financial instrument with embedded derivative
13,714 Debtors, deposits and prepayments
3,531 Time deposits and bank balances
517,357 [matches carrying value]

786,999 Amount due from subsidiary [close to sale price?]

Sinonet Holdings Limited Investment holding 1 ordinary share of US$1 British Virgin Islands 100% Percentage of equity interest held by the Company
Argent Holdings Ltd. Investment holding 30,257 ordinary share of US$1 British Virgin Islands 91% Percentage of equity interest held by the Group

Pending litigation
On 18 November 2005, a writ of summons was issued against Silverlink Holdings Limited (“Silverlink”), an associate, and Argent Holdings Ltd. (“Argent”), a subsidiary, by Rockline Limited (“Rockline”) and Superon International Limited (“Superon”) in the High Court of the Republic of Singapore, alleging breaches of an agreement in that: (i) Rockline claimed that Silverlink has agreed to repurchase shares held by Rockline in Silverlink in exchange for a secured convertible note in the principal amount of US$11.1 million (HK$87 million) (“Rockline Note”) to be issued by Silverlink; and (ii) Superon claimed that Argent has agreed to repurchase its shares from Superon; and Silverlink has agreed to simultaneously repurchase its shares from Argent, and to issue a secured convertible loan in the principal amount of US$6.4 million (HK$50 million) to Superon’s nominee. Both Silverlink and Argent filed defence with the court. On 4 August 2006, Rockline was granted summary judgement against Silverlink and the Rockline Note was signed by the court on 18 August 2006. On 14 September 2006, Silverlink successfully appealed against the decision to grant judgement in favour of Rockline and was granted leave to defend the claim by Rockline on the condition that a sum of US$1.5 million (HK$12 million), being the interest payable on the Rockline Note, be paid into the court as security within 21 days from 14 September 2006. The action against Silverlink and Argent will proceed to full trial on a date to be fixed.

The Directors are of the view that the Group has proper and valid defences to the claim and accordingly, no provision for commitment and/or loss has been accounted for in the financial statements.

acquired its interest in Silverlink in 2001

Silverlink is an investment holding company whose assets comprise of a chain of Amanresort hotels

net loss of Silverlink before and after taxation and extraordinary items for the financial year ended 31 December 2005 were approximately US$7,691,000 and US$8,534,000. The audited net loss of Silverlink before and after taxation and extraordinary items for the financial year ended 31 December 2006 were US$13,609,000 and US$14,882,000.

as at 31 December 2006, Silverlink would have a net current liabilities of approximately US$38 million

since the Group’s acquisition of Silverlink, Silverlink has been loss making

On January 21, 2008, the Group acquired 52.25 percent stake in Silverlink Holdings Limited, through acquisition of 100% shares in Sinonet Holding Limited which in turn holds 91.78% share in Argent Holdings Limited which is a 56.93% holdings company of Silverlink Holdings Limited, for a purchase consideration of Rs. 42,368.87 lacs. Further to the acquisition Overseas Hotels Limited exercised right option to increase the holding in Silverlink Holdings Limited to 89.92% by paying purchase consideration of Rs. 16,188.40 lacs. Apart from acquisition of shares Group also acquired Convertible loan notes of Silverlink Holdings Limited for a purchase consideration of Rs. 38,103.65 lacs on November 16, 2007 over and above convertible loan notes worth Rs.14,107.19 lacs held by Argent Holdings Limited.

The amount of purchase consideration has been allocated as follows:
Components Amount (Rs. in lacs)
Goodwill 24,085.68
Fixed assets, net Nil
Investments 22,674.50
Less: Current liabilities 4,391.31

total assets of Rs 229,111.76 lacs
total revenues of Rs Nil
total cash flows of Rs 15,578.14 lacs
at December 31, 2007

total assets of Rs. 190,585.80 lacs
revenues of Rs. 40,287.04 lacs
total cash outflows of Rs. 10,404.82 lacs
year ended December 31, 2008

assets of Rs. 176,684.45 lacs
revenues of Rs. 24,889.89 lacs
total cash outflows of Rs. 437.14 lacs
December 31, 2009

assets of ` 173,858.70 lacs,
revenues of ` 36,980.45 lacs
total cash outflows of ` 513.57 lacs
year ended December 31, 2010