ESR Interim Report 2022

NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION For the six months ended 30 June 2022 20. DISPOSAL OF SUBSIDIARIES In April 2022, the Group has, through its wholly-owned subsidiary, entered into a sale and purchase agreement to dispose of the 47.38% interests in a subsidiary, which is Brendale Asset Trust. US$’000 Net assets disposed of: Investment properties 114,312 Cash and bank balances 1,855 Trade receivables, prepayments, trade and other receivables 472 Bank and other borrowings (68,528) Trade payables (2,337) 45,774 Exchange fluctuation reserve 1 Gain on disposal of subsidiaries 531 46,306 Satisfied by: Cash 22,219 Investment in a joint venture 24,087 46,306 An analysis of the net inflow of cash and cash equivalents in respect of the disposal of a subsidiary is as follows: US$’000 Cash consideration 22,219 Cash and bank balances of a subsidiary disposed of (1,855) Net inflow of cash and cash equivalents included in cash flows related to investing activities 20,364 R E A C H I N G N E W H E I G H T S 76

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