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China Jishan sued by buyer over agreement involving proposed disposal
CHINA Jishan Holdings said that a legal claim has been filed in China by a buyer against the company in relation to the purchase of a developer and manager of residential and commercial properties from its wholly owned Zhejiang Jishan Printing and Dyeing Co (Jishan P&D).
The purchaser, Shanghai Jintumu Real Estate Co is suing Jishan P&D - the deal's guarantor - and Shao Xing Yue Sheng Real Estate Property Development Co - the Shaoxing-based target - to withdraw the supplemental agreement on the deal and for the continued performance of the agreement.
It is also claiming 485,973 yuan (S$99,965) for costs incurred as at Sept 28, 2017 for certain breaches alleged to have been committed by Jishan P&D.
Shanghai Jintumu Real Estate has also obtained an injunction order from the Higher Court of Zhejiang Province, China to freeze certain assets - the 100 per cent interest in the target held by Jishan P&D and the Seven Land Use Rights (for up to 780 million yuan).
China Jishan said that it was in the process of seeking legal advice on the matter, and will "vigorously defend the legal claim and seek to unfreeze the assets".
"The company would like to emphasise that it has, in the course of its dealings with the purchaser, complied with all relevant requirements under the SGX listing rules and applicable law for the important purpose of safeguarding the interest of shareholders," it said.