Extension of Loan with Mayne Management

RNS Number : 5776V

UniVision Engineering Ltd

16 January 2012

 

 Embargoed for release at 7am                                                                                                                                  16 January 2012

UniVision Engineering Limited
("UniVision" or the "Group) 

Extension of loan terms with Mayne Management Limited 

UniVision, the AIM listed Hong Kong based designer and installer of digital surveillance and integrated security systems, is pleased to announce that on 11 January 2012 it  signed an agreement with the former holding company of Univision Holdings Ltd (a major shareholder in the Group), Mayne Management Limited ("Mayne"), whereby Mayne has agreed to extend the term of its current loan facility of US$3.97 million with UniVision for a further one year to 31 March 2013 (the "Supplementary Agreement V").

The original loan agreement, announced on 8 January 2008, provided for a repayment date of 30 September 2008.  Four supplementary agreements were subsequently entered into by the Group on 22 September 2008, 21 January 2009, 25 January 2010 and 8 February 2011 which extended the term of the loan to 31 March 2012. The loan was made exclusively to finance a shopping mall project in Zhongshan, China,being developed by the Group's wholly-owned Chinese subsidiary, Leader Smart Engineering (Shanghai) Limited (the "Project").

The terms of the supplementary agreements provide that Mayne will not exercise the right to exchange the total or any part of the loan amount to a convertible bond of the Group during the term of the Supplementary Agreement V.

The terms in the event of default remain as in the original agreement and the further supplementary agreements, namely that Mayne can call for possession of a maximum 40% interest in the Project or exchange for a convertible bond with a conversion price at 4 pence per ordinary share of UniVision.

The extension of the loan facility with Mayne constitutes a related party transaction for the purposes of rule 13 of the AIM Rules for Companies. The directors of the Company, with the exclusion of Stephen Koo (Chairman of UniVision), consider, having consulted with the Company's nominated adviser, Allenby Capital Limited, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Stephen Koo, Chairman of UniVision, commented: "Mayne remain very supportive of our efforts to realise shareholder value in the Zhongshan shopping mall and we are pleased to have been able to conclude this agreement with them. We are actively working on a number of strategies to unlock the value we believe exists in the shopping mall. This extended loan agreement provides a timescale that should ensure we are not time-pressured into entering into a sub-optimal transaction and that the Board of UniVision maximise value for shareholders on any disposal of our interest in the Zhongshan shopping mall."

 -ends-

For further information visit www.uvel.com or contact:

UniVision Engineering Limited	[phone]
Stephen Koo, Chairman
Chun Hung Wong, CEO
Nicholas Lyth, Non-Executive Director	[phone]
Allenby Capital Limited (Nominated Adviser/ Broker)
Nick Athanas/James Reeve	[phone]
Notes to Editors: About UniVision Engineering UniVision was incorporated in Hong Kong in 1979 and is now 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".  To date the Group has completed high profile projects for clients including Hong Kong International Airport, Tsing Ma Bridge Crossing, Mass Transit Railway, Shanghai Plaza 66 and Sydney CityRail Network selling its products through its distribution channels in China, Taiwan and other Asian countries.

 

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