Update on Zhongshan Shopping Mall

RNS Number : 4899Z

UniVision Engineering Ltd

07 March 2013

 



7 March 2013

UniVision Engineering Limited

("UniVision" or the "Company")

Update on Zhongshan Shopping Mall

UniVision, the AIM listed Hong Kong based designer 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.

Hong Yiand Leader Smart Engineering (Shanghai) Limited, Univision's PRC subsidiary, have applied to the Guangzhou Arbitration Commission to arbitrate on this dispute. This application was accepted on 4 March 2013. This acceptance grants Fu Li Wa and Hong Yi 4 months to resolve the dispute. If they fail to resolve the dispute in this time, the Commission will arbitrate and its decision will be binding on both parties.(As practice，The Arbitration Commission should process the Arbitration in four months time).

Stephen Koo, Chairman, commented as follows:

Hua Xin and its affiliates remain committed to the purchase of the Mall. We hope that the acceptance of the arbitration case will encourage all parties involved in the purchase of the 49% stake to negotiate an appropriate settlement. This will then allow Hua Xin to complete its purchase of Univision's 51% stake in the Mall.

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)
John Simpson	[phone]
Nick Cowles	[phone]

 

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