The sale of Silver Heritage Group’s Nepal assets remains in limbo after the potential buyer failed to deposit US$3 million into an escrow account by a previously agreed 15 August deadline.
Providing an update on Tuesday, Silver Heritage revealed it has yet to receive the US$3 million deposit but said the failed payment was due to reasons outside of the control of either the company or the buyer, named as a Mr Indra Bahadur Thapa. As a result, the deadline has been extended until 10 September.
If the sale does proceed, Thapa would acquire the company’s Nepal operations at an enterprise value of US$33.9 million by taking ownership of the local Silver Heritage subsidiary holding its Nepal assets for US$20 million. The deal would see US$20 million paid in cash with Thapa also taking on a US$13.9 million lending facility with a consortium of Nepalese banks.
Silver Heritage also revealed on Tuesday that a new interim ex parte injunction has been granted by the Rupandehi District Court against two of the company’s subsidiaries in relation to land at Tiger Palace Resort. It follows a previous injunction earlier this month over the same issue, alleging Tiger Palace has encroached on four plots of land belonging to a public canal and another belonging to the government.
Silver Heritage said it is now seeking further legal advice but has previously stated that the plots “are not and were never legally registered in the name of the company (or its subsidiaries) but rather as unused Government land lying within the boundaries of Tiger Palace Resort Bhairahawa, and as such the injunction does not restrict the sale or construction on any plots legally owned by the Company through its subsidiaries.”
