Sydney - Friday - June 22: (RWE Australian Business News) - DVM...

Sydney - Friday - June 22: (RWE Australian Business News) - DVM
International Ltd (ASX code: DVM), formerly Digital and Voice Media Ltd,
today announced an update on its planned acquisition of 17.5% of Hong
Kong-incorporated XDK South China Petrochemical Ltd for $1.25 million.
DVM and XDK are continuing to pursue their previously announced
plans in the China market.
However, XDK has encountered delays in progressing its business
plan in accordance with the timetable originally envisaged by DVM.
As part of XDK's business plan, which involves a joint venture
with China's Shenzhen Zhongyou Tongda Petroleum Co Ltd (SZT), XDK must
obtain investment approval from Petrochina's Investment Committee.
SZT is 20%-owned by Petrochina.
Those approvals have not yet been obtained and the timetable for
an outcome remains indeterminate.
The DVM board has therefore thought it prudent to withdraw about
$1.0 million of the $1.25 million subscribed for shares in XDK.
The board determined that it was the best interests of
shareholders to have that capital directly available to DVM should other
immediate or short-term investment opportunities arise.
DVM says it regards the XDK project as a long-term opportunity.
DVM is continuing discussions with XDK and will review possible
future investment if XDK achieves its business development targets.
The announcement was made after the close of trading.
Shares in DVM fell 0.5c to 6.7c today.