Logo of Phnom Penh Post newspaper Phnom Penh Post - Wai Chun axes plans to buy Kingdom mines

Wai Chun axes plans to buy Kingdom mines

Wai Chun axes plans to buy Kingdom mines

WAI Chun Mining Industry Group has scrapped the planned purchase of two Cambodian iron mines.

According to a filing on Friday with the Hong Kong stock exchange, the company has terminated an agreement over the possible acquisition of the mines together with a 74 percent interest in a South African manganese mine from Guangxi Non-ferrous Metals Group Company Limited and Guangxi Sincerity Investments & Trading Company Limited.

The two Cambodian mines were described in a November statement as being in the Kohkeo and Phnom Thmar regions of Cambodia.

Wai Chun was to purchase the mines through a combination of cash and a share issue to state-owned Guangxi, which would have seen the firm become “the flagship enterprise of Guangxi Non-Ferrous Metals in undertaking business activities in the mining and mineral resources sector,” it said in the November statement.

However, the two parties had mutually agreed to terminate the provisional agreement, said Hong Kong-based Wai Chun on Friday. “The company and the Guangxi Parties are unable to reach an ultimate agreement on the final structure and terms of definitive agreements in relation to the proposed acquisitions,” it said.

The buy “would require reorganisation and compliance with the relevant laws and regulations which provides uncertainties to the proposed acquisition”, it added.

Its board considered that the termination of the Heads of Agreement and the terms of the termination “have no material adverse impact on the existing business operations of the group”.

For the six months of 2010, the group recorded a turnover of HK$133 million (US$17 million) largely attributable to demand for its footwear business.

The company’s main business, according to its website, is the holding of 65 percent equity interest in Nority Limited, a manufacturer of athletic and athletic-style leisure footwear and golf shoes.

Gross profit during the same period was HK$17 million.

Shares in Wai Chun ended at HK$0.184 at close of trade on the Hong Kong exchange on Friday.

MOST VIEWED

  • Locations shut, dozens more Covid-19 positive

    The Ministry of Health has closed 23 locations in connection with the February 20 community transmission of Covid-19 and summoned for testing anyone who had direct contact with affected people and places. The number of discovered related infections has risen to 76, including 39 women. In a press release,

  • Kingdom's Covid cluster cases jump to 194

    The Ministry of Health on February 25 confirmed 65 new cases of Covid-19, with 58 linked to the February 20 community transmission. The latest cluster cases include nine Vietnamese nationals, five Cambodians, one each from Korea, Singapore and Japan, with the rest being Chinese. This brings the total number

  • Cambodia's Covid cluster cases rise to 137

    The Ministry of Health on February 24 recorded 40 more cases of Covid-19, with 38 linked to the February 20 community transmission. Of the 40, two are imported cases involving Chinese passengers. The 38 include two Vietnamese nationals and one Cambodian, with the rest being Chinese. This brings the total cases

  • Covid cluster raises alarm, health bodies urge vigilance

    The Ministry of Health and the World Health Organisation (WHO) in Cambodia have expressed great concern over the February 20 cluster transmission of Covid-19 in the community. Both entities appealed for vigilance and cooperation in curbing further spread of the virus. Ministry spokeswoman Or Vandine said

  • PM confirms third Covid-19 community transmission

    Prime Minister Hun Sen on February 20 announced the Kingdom's third outbreak of Covid-19 community transmission after 32 people tested positive in just over 10 hours. Addressing the public from his residence after an emergency meeting, Hun Sen said: "I dub it February 20 Community Event, in which 32 cases

  • Cambodia to make auto-rickshaws

    Locally-assembled electric auto-rickshaws could hit the Cambodian market as soon as early in May after the Council for the Development of Cambodia (CDC) gave the greenlight to an investment project at the weekend. According to a CDC press release, it will issue a final registration