YIU Wing International Holdings has entered into further talks with managing director Cheng Chao-ming over the group's recent controversial guaranteed profit by a mainland joint-venture, of which Mr Cheng is also a controlling shareholder.
Yiu Wing is to acquire King Sun Holding, a property investment company incorporated in Singapore and 100 per cent owned by Mr Cheng, for S$23.5 million (about HK$126 million).
A deposit of HK$25.9 million has been paid and the agreement is to be completed on the condition that King Sun successfully leases out at least 80 per cent of its 22,833 square feet in property for a minimum of S$4 per sq ft.
The audited consolidated net losses of King Sun for 1993 were S$928,139 and for 1994 S$1.14 million.
Yiu Wing chairman Cheung Yiu-wing yesterday defended the acquisition, saying the firm was making a well-timed entry to the Singaporean market.
'We followed others when they were making the move into Singapore,' he said. 'It seems they're doing quite well.' He said the purchase was about a 9.6 per cent discount to its open market value.
