28th Feb 2014 11:19
LONDON (Alliance News) - UniVision Engineering Ltd Friday said it is considering its options for its 51% stake in the Zhongshan Ming Xuan shopping mall project, including retaining it and developing the mall itself, a move that comes days after it was excused having to repay a USD3.95 million loan.
The AIM-listed, Hong Kong-based designer of surveillance and security systems had signed a deal in June 2012 to sell the stake in the mall to Guangzhou Hua Xin Trading Company Ltd for CNY110 million. The sides had updated the deal in August last year, setting a deadline for completion by the end of this month.
In a statement, the company said the sides have now agreed to cancel the deadline date and instead await a decision by the Arbitration Commission in China, which is deciding on a dispute over the commercial terms of a separate agreement that Guangzhou Hua Xin had to buy the other 49% stake in the mall from Fu Li Wa.
However, UniVision added that it is now exploring other options for the mall stake, including the possibility of developing the project itself if it can get further financing, after it was earlier this month let off a USD3.95 million loan it owed Mayne Management Ltd and all interest that had built up.
UniVision Chairman Stephen Koo previously worked for Mayne, and said his personal relationship with the company had been one reason Mayne was willing to cancel the loan without being repaid.
UniVision Friday said the mall was given a market value of CNY295 million in a valuation report last June.
UniVision Engineering shares were up 12/3% at 0.87 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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