Last checked at 12 Sep 2014 07:00
12 September 2014
UniVision Engineering Limited
("UniVision" or the "Company")
Update on Arbitration Process relating to Zhongshan Shopping Mall
UniVision, the AIM quoted, Hong Kong based designer and installer of digital surveillance and integrated security systems has a 51% stake in the Zhongshan Shopping Mall (the"Mall"). UniVision entered into an agreement with Guangzhou Hua Xin Trading Company Ltd ("Hua Xin") on 22 June 2012 to sell this stake to them for a total consideration of RMB 110m.
The remaining 49% stake in the Mall is owned by Zhonghsan Fu Li Wa Property Development Ltd ("Fu Li Wa"). An affiliate of Hua Xin, Hong Yi Real Estate Agency Company Ltd ("Hong Yi") has entered into an agreement with Fu Li Wa to purchase its 49% stake in the Mall. The transfer of stake from Fu Li Wa is in dispute over some of the commercial terms of the agreement. Hong Yi and Leader Smart Engineering (Shanghai) Limited ("Leader Smart Shanghai"), Univision's PRC subsidiary, applied to the Guangzhou Arbitration Commission ("the Commission") for arbitration of this dispute. The application was accepted on 4 March 2013.
The first hearing of the Commission in relation to this dispute was held on 14 June 2013. Since that date, the Commission has obtained some documents and information from the relevant parties to enable it to reach a final decision.
Our PRC legal counsel advised the Company on 10 September 2014 that the Commission has issued a notice on 1 September, 2014. It stated that according to the PRC civil litigation laws, the death of Mr. Wu, the Legal Representative of Fu Li Wa, the process of arbitration is temporarily suspended pending the appointment of the successor to Mr. Wu. A further announcement will be made in due course.
The Company has submitted to the Commission the audit report which certified that Leader Smart Shanghai has paid Fu Li Wa and its subcontractors not less than Rmb 67.5 million as consideration for the Company's stake in the Project. This information was requested by the Commission as it forms part of their decision making process.
Further updates will be provided to shareholders as appropriate.
For further information visit www.uvel.com or contact:
UniVision Engineering Limited Stephen Koo, Chairman Chun Pan Wong, Chief Executive Officer Danny Kwok Fai Yip, Finance Director Nicholas Lyth, Non-Executive Director
| Tel: +852 2389 3256 www.uvel.com
+44 (0) 7769 906686 |
ZAI Corporate Finance Limited (Nominated Adviser and Broker) Richard Morrison / Slav Slavinski | Tel: +44 (0)20 7060 2220 www.zaicf.com
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