30th Sep 2016 17:09
LONDON (Alliance News) - Grand Group Investments PLC said Friday it has contracted for the sale of its entire holdings in its investments, Wuxi Victory Media and Culture Co Ltd, and WuXi Jin Xun Tong Technology Ltd.
Grand Group's shares have been suspended since June pending the publication of its accounts for 2015.
The investment company has previously stated that it was looking for production from its investee company accounts prior to finalising its own accounts. Whilst these have now been produced, the auditors of the investee companies have not been able to express an opinion on some accounts and whether any adjustments might have been found necessary, which would have a consequential effect on the investee companies' financial performance.
As such, Grand Group's auditors have indicated they would be unable, without more work, to form an opinion on the carrying value of these investments.
Grand Group said it does not believe it is in its interests, or its shareholders, to produce accounts on which its auditors are unable to express an opinion. It has been working with the investee companies to provide appropriate audit evidence, however, the investee companies have indicated they are not prepared to commit further resource or effort to this process.
If the company does not produce its results before the end of 2016 its shares will be cancelled from AIM. Therefore, it has opted to sell the investments.
It will sell its 33% share in Victory directly back to the company for CNY235.2 million, to be settled in cash instalments. This represents a premium of CNY39.2 million to its original investment. It will sell its stake in JXT back to the company for CNY30.0 million, to be settled in two cash instalments. This is also a premium of CNY10.0 million to its original investment.
Grand Group will now work with its auditors to finalise the accounts for 2015, and to make appropriate adjustments to the carrying value of its investments for the half year to the end of June.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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