Wednesday, August 17, 2022

Silver Heritage says Nepal legal action poses no threat


Australia-listed Silver Heritage said legal action brought against its Nepalese units by a local consumer water group pose no immediate commercial threat or risk to its operations in the country.

The consumer group had sought an injunction against the sale of, or construction on, certain land plots near the company’s Tiger Palace Resort, claiming they were encroaching on government land.

In a statement to the stock exchange, the group said it had sought independent advice from its Nepal legal counsel in the case. It found that the scope of the interim injunction granted to the consumer group is limited to just five plots of land, which have never been legally registered in the name of the Silver Heritage or its units.

The land is unused government land lying within the boundaries of Tiger Palace.

“As such the injunction does not restrict the sale or construction on any plots legally owned by the company through its subsidiaries,” it said. 

“The current interim injunction and legal proceedings pose no immediate or material, or legal impact or risk on the company’s operations in Nepal.”

Silver Heritage said it has consulted with local communities who have confirmed their support for the Tiger Palace Resort.

In July, the company said it had received an offer with an enterprise value of  $33.9 million to buy its Nepal operations from a local business man. 

Indra Bahadur Thapa, represented by I. Hugh Holmes, of Hotel Investment Partners will buy the Silver Heritage unit that holds the Nepalese assets for $20 million.

The enterprise value includes a loan of $13.9 million entered into by Nepal unit, Tiger One, with a consortium of local banks. The buyer will assume that loan.

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