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Universe Int'l sell-off cancelled |
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Written by Patrick Frater
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Monday, 30 June 2008 |
HONG KONG – The sale of a majority stake in Hong Kong production shingle Universe International Holdings has collapsed (Variety, June 20, 2008.) Company notified the Stock Exchange that negotiations between Globalcrest Enterprises and a third party had ceased, “as both parties could not come to an agreement on price and structure for the possible disposal.” Globalcrest, which owns 54% of UIH, is controlled by a trust whose beneficiaries include Universe chairman Daneil Lam (sic, second ref: Lam) and his wife Chiu Suet-ying (second ref: Chiu), who is also a Universe exec director. Local Hong Kong newspapers have reported widely that the sale arose from a marital dispute between Lam and Chiu. Contacted by Variety Monday, Lam was said to be away from Hong Kong and unavailable for comment. Sources within the company offered little additional detail to the exchange notice, save to say “we couldn’t compromise on price and structure.” Company’s shares were significantly compromised by news of the sale talk collapse. They tumbled 35% in Monday trading from HK$0.15 to HK$0.10. Universe is currently enjoying a strong performance for its recent Johnnie To-helmed “Sparrow.” After 12 days on release pic, which premed in competition at Berlin in February, has grossed HK$4.9 million and is in fourth place in the local box office. Company is now in the last days of shooting the $12 million Pang brothers actioner "Storm Warriors." In the year to end of June 2007 Universe enjoyed revenues of $17.4 million, but net profits to shareholders dropped from $2.02 million to $1.47 million. In his annual statement Lam attributed decline to downward valuation of company's investment properties.
© Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
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Last Updated ( Wednesday, 02 July 2008 )
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