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LONDON (Alliance News) - UniVision Engineering Ltd on Tuesday said it has entered into an agreement in principle to sell its Taiwanese subsidiary T-Com Technology Co Ltd to its Executive Chairman Stephen Koo.
The surveillance and security company said Koo, who holds a 72.9% stake in UniVision, will pay HKD600,000, or around GBP58,000, for UniVision's 52.25% stake in T-Com.
Under the deal, all amounts due to UniVision from T-Com will be settled within 24 months of the transaction, and UniVision will have an option to repurchase its shareholding in T-Com for HKD600,000, plus 3.0% per annum, for a period of five years from the sale of the shares.
UniVision said that, as at March 31, T-Com had net assets of around HKD3.0 million, including a loan due to a minority shareholder of HKD1.5 million and additional sums due to UniVision and its subsidiaries of HKD930,000.
T-Com reported an operating loss of around HKD6.2 million for its financial year ended March 31, largely due to a 52% decline in construction revenue, UniVision said.
"The transaction will enable UniVision to avoid the future losses of the Taiwanese operations to the group while offering it the ability to repurchase this business without loss, if a turnaround is achieved," UniVision added.
The company noted that its independent directors, being the directors of UniVision excluding Stephen Koo, have consulted with UniVision's nominated advisor and broker and consider the terms of the transaction to be "fair and reasonable in so far as the shareholders of UniVision are concerned".
Shares in UniVision were up 14% at 0.540 pence on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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