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Chip Eng Seng settles dispute with vendor of childcare centre in Australia
MAINBOARD-listed Chip Eng Seng said on Wednesday night that it has reached a settlement over the termination of a proposed acquisition of childcare centre in Tarneit, Victoria, Australia.
Its wholly-owned subsidiary Penn Junior TW and the vendor Tarneit West Childcare attended a compulsory mediation session and arrived at a settlement on Wednesday. Under the terms of the settlement, the parties also release and discharge each other from all claims relating to the dispute.
The settlement will not have an impact on the net tangible assets and earnings per share of the company for the current financial year ending Dec 31.
In late May, Penn Junior TW commenced legal proceedings in the Supreme Court of Victoria against the vendor and the guarantors for a refund of the deposit of A$350,000. It asserted that conditions precedent relating to the Australian authorities' approval for kindergarten funding had not been fulfilled or waived by the long-stop date.
The vendor claimed that conditions had been satisfied and that Penn Junior TW's failure to effect completion, notwithstanding receipt of a notice of default from the vendor, had led to the termination of the contract of sale, and that the vendor's solicitors were thus entitled to release the deposit to the vendor.