Variation of Loan Terms

RNS Number : 3711B

UniVision Engineering Ltd

17 February 2011

 



 17 February 2011

UniVision Engineering Ltd

("UniVision" or "the Group)

Extension of Loan US$6million from the Major Shareholder

UniVision, the AIM listed Hong Kong based designer and installer of digital surveillance and integrated security systems, is pleased to announce that it has signed an agreement with the 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$6 million with UniVision, along with the accrued interest payable of US$2.25 million, for a further one year to 31 March 2012 (the "Supplementary Agreement IV").

The original loan agreement, announced on 8 January 2008, provided for a repayment date of 30 September 2008.  Three supplementary agreements were subsequently entered into by the Group on 22 September 2008, 21 January 2009 and 25 January 2010 which extended the term of the loan to 31 March 2011. 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, which provide for an interest rate of 15% per annum, came into force on 1 October 2008.  Additionally they 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 IV.

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, a substantial shareholder of the Group, 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.

-ends-

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

UniVision Engineering Limited	[phone]
Stephen Koo, Chairman
Chun Hung Wong, CEO
Allenby Capital Limited (Nominated Adviser/Joint Broker)
Nick Athanas/James Reeve	[phone]
SVS Securities plc (Joint Broker)
Ian Callaway/Alex Mattey	[phone]

 

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