Update on Sale Agreement

RNS Number : 0792U

UniVision Engineering Ltd

21 December 2012

 



                                                                                                             21 December 2012

UniVision Engineering Limited

("UniVision" or the "Group")

Further update on Agreement for sale of the Group's interest in Zhongshan shopping mall project

UniVision, the AIM listed Hong Kong based designer and installer of digital surveillance and integrated security systems, announced on 22 June 2012, the Group, Guangzhou Hua Xin Trading Company Limited ("Hua Xin") and Guangzhou Jun Heng Mechanical and Electrical Equipment Company Limited (the "Investor") entered into an agreement (the "Agreement") for the sale of the Group's entitlement to a 51% interest in the Group's shopping mall project in Zhongshan, China (the "Zhongshan Project") for a total consideration of RMB110 million (equivalent to c. £10.7 million and HK$135 million) (the "Sale").

On signing the Agreement, the Group received a deposit of HK$6.17 million from the Investor which was a down payment on the Sale and would be deducted from the overall consideration to be paid to Univision.

The Investor was to pay a further amount of US$3.97 million (equivalent to c.HK30.78 million) after 3 months and this payment is now due. The Group announced on 22 September 2012that the Investor requested this payment was deferred for a further 3 months. This amount is in respect of an outstanding loan of US$3.97 million (equivalent to HK$30.78 million) from the Group's former major shareholder, Mayne Management Limited ("Mayne"). The loan facility from Mayne was made exclusively to finance the Zhongshan Project and, under an agreement announced by the Group on 16 January 2012, it has been extended to 31 March 2013.

The balance of HK$96.93 million, relating to the Sale, remains due to be paid to UniVision in cash, or other methods to be mutually agreed by the Group, Hua Xin and the Investor, by 22 December 2012according to the Agreement.

The Group has now been advised by the Investor that its purchase of UniVision's share in the Zhonghsan Project has been put on hold. This is to allow time for Zhonghsan Fu Li Wa Property Development Limited (the "Property Developer") and Zhongshan Jun Yue Property Development Limited (the "Re-Purchaser") to conclude negotiations pertaining to repayment of financing provided by the Re-Purchaser to the Property Developer as detailed in the Group's announcement on 11 December 2009.

Both Hua Xin and the Investor have reiterated to UniVision their commitment to complete the purchase of UniVision's share of the Zhongshan Project.

Stephen Koo, Chairman of UniVision commented:

"The Board is appraised of the situation and remains confident that the transaction to sell the Group's share of the Zhongshan Project will be completed. It has however been necessary to put the sale on hold to allow time for the Property Developer and Re-Purchaser to conclude their negotiations.  Mayne continues to be supportive of this transaction."

-ends-

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)	[phone]
John Simpson Imran Ahmad

 

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