VMEP HOLDINGS and Daewon Seodeok terminate the Joint Venture Agreement
VMEP HOLDINGS announced that its wholly-owned subsidiary VMEP has terminated the Joint Venture Agreement with Da Wang Shou De. Due to changes in Vietnamese law, the joint venture no longer meets the eligibility requirements for the project application, and both parties have agreed to terminate the agreement on March 28, 2025. The company has no intention of establishing a new joint venture but is considering implementing the project independently through VMEP. The board believes that this move will not have a significant impact on financial performance and business operations
According to the announcement from VMEP HOLDINGS (00422), the company's wholly-owned subsidiary VMEP has entered into a joint venture agreement with Daewon Cantavil Joint Stock Company (formerly known as 大王守德房屋开发股份公司).
As previously announced, the two parties plan to establish a joint venture company under the joint venture agreement, with the aim of investing, constructing, and developing a comprehensive community on the land located in Vietnam.
As of the date of this announcement, the two parties have not yet completed the procedures for applying for the investment registration certificate for the project and establishing the joint venture company. Due to changes in Vietnamese laws and regulations, the joint venture no longer meets the qualifications to apply for the project, and it is no longer possible to use the joint venture company to implement the project. Therefore, VMEP and Daewon have agreed to terminate the joint venture agreement and signed a termination agreement on March 28, 2025. After the termination agreement, the company does not intend to establish a new joint venture to promote the project but is exploring the feasibility of independently implementing the project on the land using the 1/500 development plan prepared by both parties through VMEP.
The board of directors believes that the termination agreement will not have a significant adverse impact on the group's financial performance and business operations and is in the overall interest of the company and all shareholders
