4th Dec 2007 14:44
Asian Growth Properties Limited04 December 2007 4th December, 2007 ASIAN GROWTH PROPERTIES LIMITED Termination of Acquisition of 80% Interest in a Company for Property Developmentin Wenzhou City, China Asian Growth Properties Limited (the "Company") (AIM stock code: AGP), the HongKong based China property development and investment company wishes to makereference to its announcement (the "Announcement") dated 17th October, 2007regarding the proposed acquisition of 80% of the entire issued share capital andshareholder's loan of Famous City Enterprises Limited at RMB518,400,000 (GBP33,900,000) (subject to adjustment). Unless the context requires otherwise,capitalized terms used herein shall have the same meanings as defined in theAnnouncement. The Board announces that on 4th December, 2007, the Agreement entered intobetween the Purchaser (an indirect wholly-owned subsidiary of the Company), theSeller and the Guarantor for the Acquisition has been terminated. As disclosed in the Announcement, completion of the Agreement would be subjectto the fulfilment of certain conditions precedent including the Purchaser beingsatisfied with the results of its due diligence investigation. Following its duediligence investigation, the Purchaser has determined that it is not satisfiedwith the results of its investigation and has therefore given notice to theSeller to terminate the Agreement with immediate effect. A deposit of HK$103,263,114 (GBP 6,429,833) has been paid by the Purchaser to anescrow agent upon the signing of the Agreement, out of which an amount ofHK$30,000,000 (GBP 1,867,995) (the "Advance") has been advanced to the Seller. The Advance is secured against an equitable charge of the shares in EurotargetInvestment Limited (the existing parent company of the WFOE). Upon terminationof the Agreement, the Purchaser has given notices to the escrow agent toforthwith repay the balance of the deposit plus interest and to the Seller torepay the Advance. On 4th December, 2007, the escrow agent has repaid thebalance of the deposit plus interest. As at the date of this announcement, theAdvance remains outstanding. The Board does not consider the termination of the Agreement will have anymaterial effect, negative or otherwise, on the financial position of theCompany. For the purpose of this announcement, amounts denominated in RMB and HK$ havebeen translated into GBP at the exchange rates of GBP 1.00 = RMB15.28 and GBP 1.00 = HK$16.06 respectively for illustration purpose only. For more information:Lu Wing Chi Tel: 852 2828 6363Executive DirectorAsian Growth Properties Limited Richard Gray Tel: 44 207 459 3600Andrew PottsPanmure Gordon & Co.Nominated Advisors This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
AGP.L