Consolidated Profit And Loss Account Page 39

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NOTES TO THE ACCOUNTS
28. RELATED PARTY TRANSACTIONS
Except for the transactions noted below, the Group has not been a party to any material related party
transactions during the year ended 31 March 2005:
a)
Included in interest in associates are loans of HK$79.8 million (2004: HK$215.6 million) contributed by
associates in proportion to their equity interests in the Sorrento property development project. The loans
from associates are interest bearing at rates as determined with reference to prevailing market rates.
Interest expenses in respect of loans from associates for the year ended 31 March 2005 amounted to
HK$0.8 million (2004: HK$17.0 million). The loans are unsecured and have no fixed terms of repayment.
b)
Included in interest in associates is an advance of HK$1,387.6 million (2004: HK$1,773.6 million)
contributed by an associate in proportion to its equity interest in the Bellagio property development
project. The advance bears interest at such rate as may from time to time be agreed by the shareholders
of the property holding company. For the current financial year, the advance is unsecured and interest
free.
c)
In respect of the year ended 31 March 2005, the Group earned rental income totalling HK$30.1 million
(2004: HK$37.0 million) from the Lane Crawford group, which are wholly owned by a trust of which the
chairman of the Company is the settlor, in respect of the leasing of the Group’s retail premises at Shop C,
Wheelock House and the Basement, Ground Floor to Fourth Floor, a portion of the Sixth Floor and
Rooms 706-8A of Lane Crawford House. These transactions are considered to be related party
transactions and also constitute connected transactions as defined under the Listing Rules.
29. POST BALANCE SHEET EVENTS
a)
In March 2005, WPSL entered into a conditional agreement to acquire 2,424,310 shares in Hamptons at
a purchase price of £3.12 per share payable by cash. The acquisition of Hamptons shares was completed
in April 2005. As this increased WPSL’s shareholding interest in Hamptons beyond 35%, it triggered a
general offer (described as a tag along offer under the articles of association of Hamptons), to all other
shareholders of Hamptons who subsequently accepted the offer with the result that Hamptons has now
become a wholly-owned subsidiary of WPSL. The total consideration paid by WPSL amounted to £23.8
million (equal to about HK$357.0 million).
b)
In May 2005, WPL entered into an agreement to acquire a property, known as No. 2 Heung Yip Road, in
Hong Kong through a private tender at a total consideration of HK$455.0 million. The transaction is
expected to complete by June 2005.
c)
After the balance sheet date the Directors proposed a final dividend. Further details are disclosed in note
9 to the accounts.
71
Wheelock and Company Limited Annual Report 2004/05

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