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StarHub Ltd Annual Report 2015

Significant non-cash transactions

During the financial year ended 31 December 2015, the Group entered into capacity swap transactions of $0.1 million (2014: $6.3 million)
with other operators.

Deconsolidation of subsidiary Overview

On 22 July 2015, STT APDC Pte. Ltd. (“STT APDC”), made an investment of $36.9 million for a 70% equity interest in SHINE Systems
Assets Pte. Ltd. (“SSAPL”). The Group’s 100% equity interest in SSAPL was therefore diluted to 30%. Based on the fair value of the
net assets disposed, the Group recognised a gain of $15.0 million under non-operating income (Note 23). The net assets and other
components of equity related to SSAPL was consequently deconsolidated from the Group’s financial statements from 22 July 2015.
The Group commenced equity accounting of SSAPL’s financial results based on its equity interest of 30% thereafter.

The net assets of SSAPL (excluding the repaid shareholder’s loan) deconsolidated and the cash flows arising from loss of control in
SSAPL are provided below:

Effect of deconsolidation on the financial position of the Group Strategy

Property, plant and equipment Note $m
Trade receivables
Balances due from related parties 52.6 Performance
Trade and other payables 0.8
Balances due to related parties 0.3
Net assets deconsolidated (4.1)
Gain on deconsolidation of a subsidiary (48.8)
Equity interests retained as investment in an associate 0.8
Consideration received 23 15.0
(15.8)

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Repayment of loan from associate Governance & Sustainability

The consolidated cash flow statement includes shareholder’s loan repayment by SSAPL totalling $36.9 million from the new equity
contributions by STT APDC for the 70% stake in SSAPL.

Investment in associate

Post transaction, the Group made an additional investment of $12.0 million pursuant to an equity call by SSAPL.

Financials

The accompanying notes form an integral part of these financial statements.