Extension of Loan Terms

RNS Number : 6285W

UniVision Engineering Ltd

29 January 2013

 



Dated: 29 January 2013

UniVision Engineering Limited

("UniVision" or the "Group)

Extension of loan terms with Mayne Management Limited

 

UniVision, the AIM listed Hong Kong based designer and installer of digital surveillance and integrated security systems, is pleased to announce that on 23 January 2013 it signed an agreement with Mayne Management Limited ("Mayne") whereby Mayne has agreed to extend the term of its current loan facility of US$3.95 million (the "Loan Agreement") to 31 March 2014 (the "Supplementary Agreement VI").

The original loan agreement, announced on 8 January 2008, provided for the repayment of the loan by 30 September 2008.  Five supplementary agreements were subsequently entered into by the Group on 22 September 2008, 21 January 2009, 25 January 2010, 8 February 2011 and 11 January, 2012 which extended the term of the loan to 31 March 2013. The loan was made exclusively to finance a shopping mall project in Zhongshan, China, being developed by the Group's wholly-owned Chinese subsidiary, Leader Smart Engineering (Shanghai) Limited (the "Project").

The terms of the supplementary agreements provide that Mayne will not exercise the right to exchange the total or any part of the loan amount to a convertible bond of the Group during the term of the Supplementary Agreement VI however Mayne reserves the right to add, vary or modify the terms and conditions of the Loan Agreement at any time. The loan remains interest free.

The terms in the event of default remain as in the Loan Agreement and the further supplementary agreements, namely that Mayne can convert the loan into a maximum 40% interest in the Project or exchange the loan for a convertible bond with a conversion price at 4 pence per ordinary share of UniVision.

Stephen Koo, Chairman of UniVision, commented: "Mayne remain very supportive of our efforts to realise shareholder value in the Zhongshan shopping mall. We are now working on a number of strategies to unlock the value we believe exists in the shopping mall. This extension to the Loan Agreement provides a timescale that should ensure we are not time-pressured into entering into a sub-optimal transaction and that the Board of UniVision maximise value for shareholders on any disposal of our interest in the Zhongshan shopping mall."

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For further information visit www.uvel.com or contact:

Univision Engineering Limited	[phone]
Stephen Koo, Chairman
Chun Hung Wong, CEO Nicholas Lyth, Non-Executive Director	[phone]
Zeus Capital (Nominated Adviser/Broker)
John Simpson Nick Cowles	[phone] [phone]

 Notes to Editors:

About UniVision Engineering

UniVision was incorporated in Hong Kong in 1979 and is now established in Hong Kong, Macau and China. The Group designs, sources and sells its own brand-name products and OEM products including, Microprocessor CCTV Control Systems, Video Distribution Amplifiers, Fibre Optic Transmission Systems and Smart Card Access Systems.

UniVision currently offers hybrid security systems and has a portfolio of cutting edge digital technology used by its blue chip client base and the Hong Kong Government. UniVision is included in the Hong Kong Government's list of "Approved Suppliers and Installation of Video Electronics Equipment".

To date the Group has completed high profile projects for clients including Hong Kong International Airport, Tsing Ma Bridge Crossing, Mass Transit Railway, Shanghai Plaza 66 and Sydney CityRail Network selling its products through its distribution channels in China, Taiwan and other Asian countries.

The Group listed on AIM, part of the London Stock Exchange, in December 2005.

 

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