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

  • Body of woman killed in Bangkok returns

    The Cambodian embassy in Thailand is working to repatriate the body of a casino dealer who was shot dead in Bangkok on Monday night. Ministry of Foreign Affairs and International Cooperation spokesman Kuy Kuong told The Post on Wednesday that officials are preparing paperwork to

  • Chikungunya hits 15 provinces, says gov’t

    Ministry of Health spokeswoman Or Vandine said on Thursday that the chikungunya outbreak in the Kingdom has spread to 15 provinces. Some 1,700 people are now suspected to have the disease. Vandine urged people to prevent its further spread by eliminating shelters for the Aedes aegypti mosquitoes

  • Gov’t exempts visa A and B holders from Covid fees

    Airline passengers who are diplomats and officials of international organisations holding Type A and B visas for travel to Cambodia are exempted from paying Covid-19 testing fees, said the Ministry of Health in its latest adjustment of rules on Wednesday. Health Minister Mam Bun Heng

  • Police arrest 29 Chinese for kidnapping in capital

    Phnom Penh Military Police arrested 29 Chinese nationals on kidnapping charges on Wednesday. The suspects are said to have abducted three other Chinese nationals from a hotel in Chaktomuk commune, Daun Penh district. The operation took place on Wednesday and was led by two deputy commanders –

  • Bill covering dress code draws ire

    Ministry of Interior secretary of state Ouk Kim Lek responded on Tuesday to criticism concerning a draft law that would ban women from wearing overly revealing clothing, saying that input from all parties will be considered as the law moves through the promulgation process. Several

  • What’s the deal with Cambodia and China’s FTA?

    Cambodia’s Free Trade Agreement (FTA) with China kicks off a series of FTAs in future but for now, critics wonder what else the parties could bring to the table apart from what it already has to date By the end of this year, Cambodia