Acquisition amendment and interim clarification (4886A)

TIDMGLOK

RNS Number : 4886A

Global Lock Safety (Intl) Grp CoLtd

30 March 2012

Global Lock Safety (International) Group Co., Limited

("Global Lock" or the "Company")

Acquisitions - amendment to terms

Correction of interims

Global Lock, the provider of security solutions to retailers and other organisations in China, announces that it has amended the terms of its group's (the "Group") acquisition of Hunan Zhijang Andun City Alarming Network Service Center ("Hunan Zhijiang"). At the same time, Global Lock also wishes to clarify various other details relating to certain of the acquisitions announced at the time of its interims on 30 September 2011.

Background to the acquisition of Hunan Zhijiang

On 23 April 2011, the Group acquired the entire share capital of Hunan Zhijiang Andun City Alarming Network Service Center("Hunan Zhijiang") for a total consideration of RMB680k in cash and new shares to be issued in Global Lock, further details of which are contained in the Company's interims as announced on 30 September 2011 (the "Acquisition").

The terms of the Acquisition of Hunan Zhijiang Andun City Alarming Network Service Centre have been amended so that rather than acquiring the entire issued share capital of Hunan Zhijiang for a total consideration of RMB680k in cash and new shares to be issued in Global Lock, the Group has instead acquired the customer list together with certain fixed assets and equipment of Hunan Zhijang for RMB680k in cash to be paid in three installments of RMB200k, RMB130k and RMB350k.

An additional term of the restructure is that the Group has also retained 100% of the ownership of its Shenzhen GLOK Zhijiang Branch.

Correction of interims

In its interim accounts, as announced on 30 September 2011, the Company announced that the Group had acquired the entire issued share capital Hunan Li County Special Security Alarming & Monitoring Co., Ltd ("Hunan Lixian"), Hubei Honghu Huawei Electronic Co., Ltd ("Hubei Hong Hu") and Hunan Qidong County Top Safety and Protection Equipment Service Co., Ltd ("Hunan Qidong"). In fact, rather than acquiring the entire issued share capital of these companies, the Group acquired the customer list together with certain other fixed assets and equipment from Hunan Lixian, Hubei Hong Hu and Hunan Qidong. In each case, the amount of the consideration, namely RMB800k, RMB280K and RMB300k in cash respectively, was correctly announced on 30 September 2011. RMB 700k of the consideration for Hunan Lixian was paid on the date of the acquisition with the balance being payable on the first anniversary, RMB250k of the consideration for Hubei Hong Hu was paid on the date of the acquisition with the balance being payable on the first anniversary of the acquisition and RMB270k of the consideration for Hunan Qidong was paid on the date of the acquisition with the balance of RMB30k being payable on the first anniversary of the acquisition.

In addition, on 25 September 2011, the Group acquired the customer list together with certain other fixed assets and equipment of the Liupanshui Branch of Luzhou Anxin Security Technology Co., Ltd., Sichuan, China ("Luzhou Liupanshui"). The consideration payable was RMB2.0m and the first RMB1.8m was paid on the date of the acquisition with the balance of RMB200k tobe paid on the first anniversary of the acquisition.

Enquiries:

Global Lock Safety (International) Group

Moxiang Li, Chief Executive Tel:[phone]

Robert Zhang, International Director Tel:[phone] ext.8069

   Andrew Gee, Non-Executive Director                                          Tel:  [phone] 

Allenby Capital Limited Tel: [phone]

Nick Naylor

Nick Harriss

Alex Price

- Ends

Global Lock provides a total anti-theft service for the Chinese retail sector. This service comprises three primary elements: a patented GSM alarm system; a 24 hour security service and guard response; and linked anti-theft insurance.

This information is provided by RNS

The company news service from the London Stock Exchange

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