Investment Update (7575R)
November 09 2011 - 2:01AM
UK Regulatory
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
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