UDL HOLDINGS<0620> & KEL HOLDINGS<0681> - Joint Announcement
The Stock Exchange of Hong Kong Limited takes no
responsibility for the contents of this announcement, makes
no representation as to its accuracy or completeness and
expressly disclaims any liability whatsoever for any loss
howsoever arising from or in reliance upon the whole or any
part of the contents of this announcement.
UDL Holdings Limited
(incorporated in Bermuda with limited liability)
KEL Holdings Limited
(incorporated in Bermuda with limited liability)
JOINT ANNOUNCEMENT
The board of directors of UDL Holdings Limited and KEL
Holdings Limited wish to clarify the various articles which
appeared in the press today.
The respective boards of directors of UDL Holdings Limited
("UDL") and KEL Holdings Limited ("KEL"), a 75% owned
subsidiary of UDL, wish to clarify the following which
appeared in the press today relating to:-
1. Disposal by UDL of its entire 75% equity interest in KEL
As previously announced on 2 May 1998, the entire 75% equity
interest in KEL are charged to Wonderland Development
Limited ("Wonderland") for securing facilities of HK$30
million to UDL. Wonderland is an independent third party not
connected with the directors, chief executive or substantial
shareholders of UDL and KEL or any of their subsidiaries or
any associates of them as defined in the Listing Rules. As
at the date of this announcement, the equity interest of UDL
in KEL has no change. UDL is not in a position and has never
made any representation to the reporters about any named
parties in respect of the negotiation for the disposal of
its entire 75% equity interest in KEL. Furthermore, UDL
Kenworth Engineering Limited, a wholly-owned subsidiary of
KEL, has filed an originating summons on 8 September 1999
to convene a creditors' meeting regarding a proposed
creditors' scheme of arrangement (the "Scheme of KEL") with
the High Court of the Hong Kong Special Administrative Region,
a court hearing will be heard on 1 February 2000. It should
be noted that the terms of the Scheme of KEL have not yet
been finalised and may or may not proceed.
2. Severance Payment
The negotiations concerning the severance payment for
ex-employees of UDL are yet to be finalised but UDL do not
rule out this arrangement in the proposed scheme of
arrangement of UDL as announced on 16 October 1999 as
accommodation to the interest of the ex-employees.
Meanwhile shareholders of UDL and KEL should exercise
extreme caution when dealing in the shares of UDL and KEL.
Further announcement will be made when there is any material
development regarding the above matters.
By Order of the Board
UDL Holdings Limited
Leung Yat Tung
Chairman
By Order of the Board
KEL Holdings Limited
Leung Yat Tung
Chairman
Hong Kong, 22 December 1999
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