Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

29 Related party transactions continued
The Group uses Jardine Lloyd Thompson (‘JLT’), an associate of JMH, to place certain of its insurance.
Brokerage fees and commissions, net of rebates, paid by the Group in 2008 to JLT amounted to US$0.5 million
(2007: US$0.5 million). The Group has no outstanding balance with JLT as at 31st December 2008 (2007: nil).
The Group provides hotel management services to Hongkong Land (‘HKL’) and received management fees of
US$0.6 million in 2008 (2007: US$0.5 million) based on long-term management agreements on normal commercial
terms. The Group has no outstanding balance with HKL as at 31st December 2008 (2007: nil).
Details of Directors’ emoluments (being the key management personnel compensation) are shown on page 80 under
the heading of ‘Directors’ appointment, retirement, remuneration and service contracts’.
30 Summarized balance sheet of the Company
Included below is certain summarized balance sheet information of the Company disclosed in accordance with
Bermuda Law:
2008 2007
US$m US$m
Subsidiaries at cost 649.6 325.6
Net current liabilities (0.9 ) (0.8 )
Net operating assets 648.7 324.8
Share capital (refer note 19) 49.6 49.6
Share premium (refer note 20) 173.4 173.0
Revenue reserves (refer note 22) 411.2 91.9
Other reserves (refer note 22) 14.5 10.3
Shareholders’ funds 648.7 324.8
31 Post balance sheet event
On 20th January 2009, the Group announced that it had entered into an agreement to sell its 50% interest in
Mandarin Oriental, Macau, which was classified as a non-current asset held for sale on 12th January 2009 subsequent
to the year end.
Mandarin Oriental, Macau was valued at US$205 million for the purposes of the sale. On disposal of its 50% interest,
the Group will receive proceeds of US$90 million with a post-tax gain of approximately US$75 million which will be
recognized in 2009. Completion of the sale is expected by the end of May 2009.
The Group will continue to manage the hotel for a period of up to two years under a short-term management
arrangement to ensure a smooth transition of operations to the new owner.
Annual Report 2008 73