Nice Rns...11 Mar 2014 07:55
11 March 2014
LED International Holdings Limited
("LED" or the "Company")
Renewal of loan facility with Ping An Bank Company, Limited
The Board of LED is pleased to announce that Ping An Bank Company, Limited has granted a new loan facility of RMB2,800,000 (approximately GBP280,000) (the "New Loan") to the Company's 60% owned subsidiary, Kepu Electronic Technology (Shenzhen) Company, Limited ("Kepu"). The New Loan has been granted on mostly identical terms to the original loan granted on 15 January 2013 (the "Original Loan"), and will be used to augment Kepu's working capital position and facilitate its organic growth plans. The Original Loan was repaid in full by Kepu in accordance with its terms.
The New Loan expires twelve months from drawdown and attracts interest at 8.4 per cent. (a 40 per cent. increase over the prevailing lending rate per annum determined by the People's Bank of China (currently 6 per cent. per annum)). Kepu is required to repay the New Loan by monthly instalments of RMB80,000 (approx. GBP8,000) commencing one month from drawdown with the remaining balance (plus accrued interest) payable at the end of the New Loan facility. The New Loan is secured by a first charge over Rooms 1013-15, Shen Hua Commercial Building, 2018 Jia Bin Road, Luo Wu, Shenzhen, the People's Republic of China owned by a third party, Mr. Lee, together with personal guarantees given by Mr. Fu Wei, the general manager and legal representative of Kepu, and his wife, Ms. Huang Yu Feng (the "Personal Guarantees").
Given Mr. Fu We|s relationship with the Company, the entry into the Personal Guarantees in order to facilitate the New Loan being granted to Kepu, as a 60% subsidiary of LED, is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors, having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
For further information:
LED International Holdings Limited
Stephen Chan - Chief Executive Officer +852 2243 3100
Allenby Capital Limited
Nick Naylor / Alex Price +44 (0) 20 3328 5656
Notes to Editors:
LED International Holdings Limited and its subsidiaries specialize in the provision of EMC contracts under which the Group installs energy saving products in its customers' premises, including lighting and reactance filtering equipment supplied by the Group, and the subsequent savings made by the customers in their electricity charges are then shared between the Group and the customers thereby enabling the Group to generate recurring r