Variation of loan terms with Mayne Management Ltd.

RNS Number : 1577U

UniVision Engineering Ltd

16 December 2011

 



16 December  2011

UniVision Engineering Limited
("UniVision" or the "Company")

Variation 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 15 December 2011, it signed an agreement with Mayne Management Limited ("Mayne") for the variation of the terms of its current loan facility with UniVision. The outstanding principal on the loan facility with Mayne is approximately US$5.615 million along with total accrued interest payable of US$2.865 million. Further details of the loan were originally announced on 8 January 2008 and the term of the loan facility was extended to 31 March 2012 (the "Supplementary Agreement IV"), as announced by the Company on 17 February 2011. The loan was made exclusively to finance the Company's shopping mall project in Zhongshan, China.

The Supplementary Agreement IV has been varied such that Mayne has agreed to waive the requirement for UniVision to pay, on 31 March 2012, the accrued interest totalling US$2.865 million and US$1.0 million of the outstanding principal (which represents interest which had been previously capitalised). In addition the terms of the loan have been varied such that the loan will become interest-free with immediate effect (the loan previously attracted an interest rate of 15% per annum).

Between 1 August 2011 and 1 November 2011 the Company has repaid HK$3.0 million of the outstanding principal on the loan (equivalent to c.US$385,000). The variations to the Supplementary Agreement IV are conditional upon the Company repaying a further minimum of HK$5.0 million (equivalent to c.US$642,000*) of the outstanding principal to Mayne by no later than 22 December 2011. The remainder of the principal is repayable to Mayne by 31 March 2012 and will amount to approximately US$3.97 million following the variations detailed above and the partial repayment.

On 11 July 2011 Stephen Koo (Chairman of UniVision) and Mayne entered into a deed of guarantee whereby Stephen Koo provided a personal guarantee to Mayne over up to US$5.0 million of the outstanding principal and accrued interest under the loan facility. These obligations remain in place under this deed of guarantee notwithstanding the variations to the Supplementary Agreement IV detailed above.

The variation of the terms of the loan facility with Mayne constitutes a related party transaction for the purposes of rule 13 of the AIM Rules for Companies. The directors of the Company, with the exclusion of Stephen Koo (Chairman of UniVision), consider, having consulted with the Company's nominated adviser, Allenby Capital Limited, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

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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]
Allenby Capital Limited (Nominated Adviser/Broker)	[phone]
Nick Athanas/James Reeve

*based on the prevailing exchange rate of 1HKD = 0.128512 USD as at 16 December 2011

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.

 

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