May 3, 2011

JSM Indochina reassesses liquidation estimate


JSM Indochina has reassessed its estimate of the liquidation accounting net asset value per share following the conditional sale of its Cambodian portfolio.

JSM Indochina says that as the disposal is comprised of asset sales rather than sales of the land owning companies, the board have been conducting a comprehensive review of the tax position of its Cambodian subsidiaries.

The company says it has now identified further tax liabilities for which its Cambodian subsidiaries may be liable.

This in addition to amounts currently provided for in the 2 March estimate of liquidation accounting NAV per share.

However, the actual amount of tax for which its subsidiaries may be liable in Cambodia may be significantly higher or lower than the total amount provided for.

It says the taxation system in Cambodia is relatively new and is characterised by frequently changing practices by the tax authorities.

The company says it has reassessed its estimate of the liquidation accounting NAV per share to be $0.16 (after the February 2011 $0.05 dividend) and $0.21 (before the February 2011 $0.05 dividend).

Chairman Scott Verges said: "We continue to work with our advisors to maximise value for shareholders in accordance with the company's investing policy.

"Clarification of the tax liabilities of the company's subsidiaries, combined with completion of the remaining asset disposals, are important steps towards further returns of capital by the company."

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