Acquisition of Leader Smart

2 Oct 2006 07:01

UniVision Engineering Ltd02 October 2006 Embargoed until 7am 2 October 2006 UniVision Engineering Ltd ("UniVision" or "the Group") Spearheading Growth into China Though the Acquisition of Leader Smart Engineering Limited UniVision, the Hong Kong based designer and installer of digital surveillance and integrated security systems, today announces the acquisition of a Hong Kong registered Electrical & Mechanical (E & M) contracting company, the Leader Smart Engineering Limited ("Leader Smart-Hong Kong"). Leader Smart-Hong Kong is the holding company of Leader Smart Engineering (Shanghai) Ltd ("Leader Smart-Shanghai"). Both companies have their licenses and permits for their E&M businesses locally and the directors believe that the acquisition of the holding company will result in greater business integration and investment. The consideration for the acquisition of the 100% equity interest in Leader Smart-Hong Kong is HK$8,849,800 (approx. £610,331). The consideration is to be satisfied by: i) the issue of approximately 5,363,990 shares in the Group at a price of 4.5p each (the "Consideration Shares") and; ii) HK$5,349,811 (approx. £368,952) in cash. Application has been made for the Consideration Shares to be admitted to AIM with admission expected to take place on 10 October 2006. The vendors of Leader Smart-Hong Kong have undertaken to the Board of UniVision that they will not dispose of any of the Consideration Sharesfor a period of two years from admission without the prior written consent of the Board of UniVision. Besides, the vendors have also guaranteed that a business profit of RMB3,000,000 (approx. £204,040) be achieved for the financialyear 2007. Leader Smart-Hong Kong has many years of experience and expertise in E&M works and related building services in Hong Kong and with the management intends to expand the business into the China market. Leader Smart-Shanghai was established in 2005. Leader Smart-Shanghai is one of the foreign contracting companies in Shanghai approved by the Shanghai Construction Bureau as Class 2 for both Interior Design and E&M installation in China. This acquisition will optimize the UniVision Group's foreign exchange flow efficiencies. As Leader Smart-Shanghai is 100% owned by a foreigner (Leader Smart-Hong Kong), the free flow of RMB is allowed by the PRC authorities after the necessary legal obligation been fulfilled, which can help smooth the operational cash flows of the UniVision Group after the acquisition. The Board of UniVision is confident that this acquisition will create important synergies for the UniVision Group to expand the businesses in both Hong Kong and Mainland China. Since the Leader Smart companies aim to provide the highest quality services to their clients in the most cost effective manner and be responsible for their implementation, integration of their project works and services should create new opportunities for UniVision to expand its CCTV security systems market exposure and provide turnkey solutions for building services. The UniVision Group has always endeavored to provide its customers with a "total security solutions" package. In addition, UniVision's Taiwan subsidiary, T-Com Tech. Co. Ltd, has already, in August 2006, introduced Taiwanese investor projects in China to Leader Smart-Shanghai's operation. The Board of UniVision therefore believes that the enlarged Group business will be able to attract additional prestigious customersas well as diversify its business segments in the Greater China region. Mr. Stephen Koo, Chairman of UniVision, commented: "This is another major engagement for the Group which will allow us to expand further into the MainlandChina market. I am pleased with our acquisition and strongly believe that we are ready to take advantage of the significant business opportunities this will present. The synergies created by this acquisition should impact positively on our profitability and we are conducting further discussions with similar companies outside China with a view to expanding UniVision's market further." - ends - For further information visit www.uvel.com or contact: UniVision Engineering Limited +852 2389 3256Stephen Koo, ChairmanJohnny Tang, Finance Director Tavistock Communications 020 7920 3150Christian Taylor - WilkinsonMatt Ridsdale Notes to Editors: About UniVision Engineering Limited:UniVision , incorporated in Hong Kong in 1979, is well established in Hong Kong,Macau and China. The Group designs, sources and sells its own brand-name products and OEM products including, Microprocessor CCTV Control Systems, Video Distribution Amplifiers, Fibre Optic Transmission Systems and Smart Card Access Systems. UniVision currently offers hybrid security systems and has a portfolio of cutting edge digital technology used by its blue chip client base and the Hong Kong Government. UniVision is included in the Hong Kong Government's list of "Approved Suppliers and Installation of Video Electronics Equipment". The Group listed on AIM, part of the London Stock Exchange, in December 2005. This information is provided by RNS The company news service from the London Stock Exchange