Investment Update (7575R)

TIDMYCI

RNS Number : 7575R

Yangtze China Investment Limited

09 November 2011

 
 Press Release   9 November 2011

Yangtze China Investment Limited

("Yangtze" or the "Company")

Investment Update

Yangtze China Investment Limited (AIM: YCI), a provider of expansion capital to China-based enterprises, today announces an update in relation to its investment in Arigata Holdings Inc. ("Onbest").

In November 2010, David Tian, the founder and CEO of Onbest, entered into an agreement with an external investor for a personal loan of RMB 20 million which would convert to an 18.67% shareholding in Onbest without a dilutive impact on Yangtze.

Since then, the external investor has taken operational control of Onbest and additionally there has been a dispute between the investor and Mr Tian over the business direction of Onbest. This dispute has had a negative impact on Onbest as a majority of its employees have resigned from the business and Onbest has suspended its operations.

There is also a dispute between Mr Tian and the external investor in relation to the repayment of the personal loan which has resulted in a legal case between the two parties. At this stage the board of directors of Yangtze cannot be sure as to the outcome of the legal case. However, in view of the disruption to Onbest's operations it has concluded that the carrying value of Yangtze's investment in Onbest is likely to be materially impaired.

It is currently unclear what the impact of the dispute will be on the carrying valuation of Yangtze's investment in Onbest, pending the conclusion of the legal case. Yangtze will therefore make further announcements in due course, as the impact of the dispute on Onbest becomes clear.

Shareholders should note that as at 31 March 2011 the carrying value of Yangtze's investment in Onbest was $4.1m.

- Ends -

For further information:

 
 Yangtze China Investment Limited 
 Wilfred Wong                       Tel: +852 2281 7222 
                                      www.yangtzecn.com 
 Yangtze Capital Advisory Limited 
 Richard Zhao                       Tel: +852 2281 7218 
                                      www.yangtzecn.com 
 
 
 Collins Stewart Europe Limited 
 Matt Goode                         Tel: +44 (0) 20 7523 
                                                    8350 
 Rishi Shah                       www.collinsstewart.com

Media enquiries:

 
 Abchurch Communications Ltd 
 Henry Harrison-Topham / Quincy Allan     Tel: +44 (0) 20 7398 
                                                          7710 
 quincy.allan@abchurch-group.com        www.abchurch-group.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCQKLBBFFFEFBB

Yangtze China (LSE:YCI)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024