NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021 34. DISPOSAL OF SUBSIDIARIES On 6 August 2021, ESR Mumbai 3 Pte Ltd (“Mumbai 3”), a wholly-owned subsidiary of the Group, allotted and issued 8 ordinary shares for Nil consideration, and 14,428,229 redeemable preference shares for an aggregate subscription price of US$14,428,229 to a global institutional investor. After the issuance of the new shares, the Group’s ownership in Mumbai 3 is diluted from 100% to 20%. Accordingly, the Group lost its control on Mumbai 3 and accounted for its investment in Mumbai 3 as a financial asset at fair value through profit or loss (the “Fund”). Deemed disposal of Mumbai 3: US$’000 Net assets disposed of: Cash and bank balances 1 Investment in joint ventures 17,285 Trade payables, accruals, and other payables# (15,688) Deferred tax liabilities (314) 1,284 Exchange fluctuation reserve (74) Loss on disposal of subsidiaries (953) 257 Satisfied by: Financial assets at fair value through profit or loss 257 257 An analysis of the net outflow of cash and cash equivalents in respect of the disposal of a subsidiary is as follows: US$’000 Cash consideration – Cash and bank balances of subsidiaries disposed of (1) Net outflow of cash and cash equivalents included in cash flows used in investing activities (1) # Included an amount of US$11,800,000 that was subsequently repaid by the Fund to the Group during the year. E S R C A Y M A N L I M I T E D A N N U A L R E P O R T 2 0 2 1 215
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