LED International Holdings Ltd Disposal of Kepu (0156A)
17 December 2014 - 8:42PM
UK Regulatory
TIDMLED
RNS Number : 0156A
LED International Holdings Ltd
17 December 2014
17 December 2014
LED International Holdings Limited
("LED" or the "Company")
Disposal of Kepu Electronic Technology (Shenzhen) Company
Limited
The board of directors of LED (the "Board") is pleased to
announce that on 17 December 2014 the Company entered into sale and
purchase agreements with Mr. Fu Wei ("Fu") relating to the disposal
by the Company of the remaining effective equity interest (60 per
cent.) in Kepu Electronic Technology (Shenzhen) Company Limited
("Kepu").
Kepu specialises in the research, development and manufacturing
of its own brand of opto-electronic products, such as LED modules,
LED unit boards and LED bar-screens, which are used in consumer
electronic goods such as air-conditioners, microwave ovens,
conventional ovens, refrigerators, washing machines and fixed line
telephones.
As announced on 17 May 2012 and as a part of its ongoing
business review, the Board had determined that the activities of
Kepu present considerable, but different, opportunities from LED's
primary focus on its energy management contract ("EMC") business
model. As currently structured, the Company does not have the
resources to take full advantage of the opportunities available to
Kepu nor does the Board foresee Kepu becoming a profitable member
of the Group in the foreseeable future. For this reason, the
Company has taken the decision to sell its remaining interest in
Kepu. This will provide the Company with further resources to
promote and focus on its EMC business model.
In pursuance of this strategy, the Board is pleased to announce
that the Company has disposed of its effective equity interest in
Kepu to Fu for a consideration of RMB360,000 (approximately
HK$450,000 or GBP37,000). Included within the sale was LED
International (Far East) Limited, the immediate holding company of
Kepu and a subsidiary of the Company in which the Company held 60
per cent. and in which Mr. Weng Xiao Yong holds the remaining 40
per cent. equity interest.
The proceeds of the sale of Kepu will be used to facilitate the
Group's working capital and its EMC development plans.
LED!|s Chief Executive Officer, Stephen Chan, said: "I am
pleased that we have been able to conclude the sale of our interest
in Kepu. This will provide us with further resources to focus on
our EMC business model which we feel is the right direction for the
Company at present and will provide us with important recurring
revenues."
Related party transaction
As Fu is the general manager and legal representative of Kepu,
the disposal of Kepu constitutes a related party transaction
pursuant to Rule 13 of the AIM Rules for Companies. The Company's
directors, having consulted with the Company's nominated adviser,
Allenby Capital Limited, consider that the terms of the disposal
are fair and reasonable insofar as the Company's shareholders are
concerned.
**Ends**
For further information:
LED International Holdings Limited
Stephen Chan - Chief Executive Officer +852 2243 3100
Allenby Capital Limited
Nick Naylor / Alex Price +44 (0) 20 3328 5656
Notes to Editors:
LED International Holdings Limited and its subsidiaries
specialize in the provision of EMC contracts under which the Group
installs energy saving products in its customers' premises,
including lighting and reactance filtering equipment supplied by
the Group, and the subsequent savings made by the customers in
their electricity charges are then shared between the Group and the
customers thereby enabling the Group to generate recurring revenue
rather than one-off sales revenue. Historically, the Group's
business has been the development, manufacture and sale of
low-powered light-emitting diode ("LED") display screens and
modules.
Under EMC contracts, the Group provides energy efficiency
solutions, including LED lighting, reactance filtering energy
saving and other energy efficiency solutions.Specifically, the
Group overhauls its customers' existing lighting and power
consumption systems (which are based on traditional lighting
technology and power generation equipment) with proprietary LED
lighting products, reactance filtering equipment and other
solutions provided by the Group. These energy efficiency products
are installed in customers' premises. The Group bears all the
upfront costs associated with the supply and installation of the
energy efficiency solutions and these costs are then recouped by
sharing in the monthly energy savings generated by the customers'
use of the energy efficiency solutions over the period of the
contracts. The Group receives revenue from customers on several
different payment terms including on a pre-payment, monthly or
quarterly basis.
For more information, please visit: http://www.led-intl.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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