Climax Intl says controlling shareholder ends talks to sell stake in co

HONG KONG (AFX-ASIA) - Climax International Co Ltd said its controlling shareholder, First Century Holdings Ltd, has terminated talks with an independent third party to sell its stake in the company.	    First Century, which owns a 56.77 pct stake in Climax International, had entered into talks with a financial advisor of a third party to sell all or part of its stake in Climax International, Climax said in a statement.	    However, the discussions were terminated on March 20 due to a disagreement on certain principal terms of the deal, the statement said.	    The company said under its bank debt restructuring agreement, any sale by First Century of its stake in Climax International may constitute a default. 	    In the event of a default, the banks can demand immediate payment of outstanding debts amounting to about 70 mln hkd. They also have the option to convert all of the debts into Climax International shares at 0.05 hkd per share, or a 20 pct discount to the average closing price of the shares.	    In addition, the six-month restriction on the banks' disposal of the stake in Climax International will be lifted, the statement said.	    Climax International is seeking resumption of trade in its shares today. 

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