Update on Arbitration Process

RNS Number : 5265I

UniVision Engineering Ltd

03 July 2013

 



3 July 2013

UniVision Engineering Limited                      

("UniVision" or the "Company")

Update on Arbitration Process relating to Zhongshan Shopping Mall

As previously stated, UniVision, the AIM quoted, Hong Kong baseddesigner and installer of digital surveillance and integrated security systems has a 51% stake in the Zhongshan Shopping Mall (the"Mall"). It entered into an agreement with Guangzhou Hua Xin Trading Company Ltd ("Hua Xin") on 22 June 2012 to sell this stake to them for a total consideration of RMB 110m.

The remaining 49% stake in the Mall is owned by Zhonghsan Fu Li Wa Property Development Ltd ("Fu Li Wa"). An affiliate of Hua Xin, Hong Yi Real Estate Agency Company Ltd ("Hong Yi"), has entered into an agreement with Fu Li Wa to purchase its 49% stake in the Mall. The completion of the agreement to purchase the 49% stake from Fu Li Wa is in dispute over some of the commercial terms of the agreement. Given that Hua Xin and its affiliates want to purchase the Mall in its entirety this has resulted in the delay of Hua Xin purchasing Univision's 51% stake

As stated in the Company's announcement on 7 March 2013 Hong Yi and Leader Smart Engineering (Shanghai) Limited, Univision's PRC subsidiary, applied to the Guangzhou Arbitration Commission to arbitrate on this dispute. The application was accepted on 4 March 2013 and granted Fu Li Wa and Hong Yi 4 months to resolve the dispute. If they failed to resolve the dispute in this time, the Commission would arbitrate and its decision would be binding on both parties.

Since 4 March 2013 Fu Li Wa and Hong Yi have been attempting to reach a negotiated settlement in relation to their dispute. This has not proved to be possible, so the process has moved to the next phase, namely arbitration by the Guangzhou Arbitration Commission. The arbitration process comprises a number of hearings with both parties which are, essentially, information gathering exercises by the Commission to enable it to reach a final decision.

The first hearing of the Commission in relation to this dispute was heard on 14 June 2013 during which the Commission requested that both parties provide it with further documentation relating to the dispute. Since that date there have been further hearings that both parties have had to attend.

The Company understands that this is a normal arbitration process in Mainland China and at a later date the Arbitration Commission will decide it has sufficient information to make a binding decision on both parties.  No formal timescale for the conclusion of the arbitration process has been provided to the Company.  Further updates will be provided to shareholders as appropriate.

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 Limited (Nominated Adviser and Broker)

Tim Metcalfe                                       [phone]

John Depasquale                                [phone]

 

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