Waive of interest on Mayne Loan facility

RNS Number : 6213U

UniVision Engineering Ltd

23 December 2011

 



23 December  2011

UniVision Engineering Limited

("UniVision" or the "Company")

Waive of interest on Mayne Loan facility

UniVision, the AIM listed Hong Kong based designer and installer of digital surveillance and integrated security systems, is pleased to announce that on 22 December 2011 it received HK$6.17 million (equivalent to c. US$790,000*) in cash from Guangzhou Jun Heng Electrical and Mechanical Equipment Company Limited (the "Investor"). HK$5.0m of the funds from the Investor have been used to repay HK$5.0m of the principal amount outstanding on the loan facility with Mayne Management Limited ("Mayne").  As a result of this, and further to the announcement by the Company on 16 December 2011, Mayne has agreed to waive the accrued interest of US$2.865 millionand 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).  The remaining principal amount outstanding on the loan from Mayne is US$3.97 million and is repayable by 31 March 2012. The loan from Mayne was made exclusively to finance the Company's shopping mall project in Zhongshan, China.

The terms of the deposit from the Investor are being finalised between the Company and the Investor however the Board anticipates that the terms will comprise either: (i) the sale to the Investor of a stake in the Company's shopping mall project in Zhongshan; or (ii) the issue of new ordinary shares in UniVision to the Investor at a price to be agreed. As announced by the Company in April 2011 the Company has been exploring ways to generate value from their shopping mall project in Zhongshan which include the potential sale of the Group's entitlement to a 51% interest in the completed project. In September 2011 Hua Xin Trading and Development Co. Ltd ("Hua Xin") and UniVision entered into a memorandum of understanding in respect of the possible sale of Univision's interest in the Zhongshan project. Should negotiations progress between UniVision and Hua Xin on the sale of UniVision's interest in the Zhongshan project then it is anticipated that the deposit of HK$6.17 million which has been received from the Investor will be deducted from the disposal price. Hua Xin and the Investor are connected to each other through shared ownership. Further details on the terms of the deposit will be announced once finalised between UniVision and the Investor.

Stephen Koo, Chairman, commented as follows:

"I am very encouraged by the progress made by Univision in resolving its outstanding liabilities to Mayne and this goes a long way to providing the certainty that investors need in Univision. I am also pleased to see progress being made regarding the Zhongshan shopping mall. We believe that our entitlement to a 51% share in this project has the potential to generate significant shareholder value and the Board will continue to work hard on behalf of UniVision shareholders to maximise this."

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

*Based on the prevailing exchange rate of 1HKD = 0.128582 USD as at  23 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.

 

END

 

 

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