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

  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • Cambodia at ‘most critical moment’, Hun Sen warns

    Prime Minister Hun Sen said the first community transmission of Covid-19 in Cambodia has led the country to the “most critical moment” that warranted urgent, large-scale operations to contain the pandemic. Hun Sen, who confirmed the first local transmission on November 28, said the source of

  • PM confirms community transmission, calls for unity

    Prime Minister Hun Sen has called on the public to stay calm, unite and follow the Ministry of Health guidelines after the wife of a senior official tested positive for Covid-19 in the Kingdom’s first case of community transmission. The case has drawn criticism

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there