Singapore tribunal orders Varroc Engg to transfer 50% JV stake to Beste Motors – CNBC TV18
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The ruling addresses a dispute with Beste Motors and TYC Brother Industrial Co Ltd (collectively TYC), including their joint venture, Varroc TYC Corporation.
“…we hereby disclose the details of a partial arbitration award (Award) passed by an arbitral tribunal seated in Singapore pursuant to the Rules of Arbitration of the International Chambers of Commerce, International Court of Arbitration, 2021 (ICC Rules) on 11th December 2024 in the matter of arbitration between VarrocCorp Holding B.V. jointly with Varroc Engineering Limited (collectively referred to as Varroc) and Beste Motors Co. Ltd. jointly with TYC Brother Industrial Co. Ltd. (collectively referred to as TYC),” Varroc Engineering said in a regulatory filing.
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The arbitration was initiated by Varroc due to alleged breaches by TYC of the shareholders’ agreement dated January 29, 2013, and the articles of association governing their joint ventures, Varroc TYC Auto Lamps, located in Changzhou and Chongqing, China.
As per the tribunal’s award, VarrocCorp Holding BV is required to transfer its 50% shareholding in Varroc TYC Corporation, encompassing its stakes in the joint venture subsidiaries, to Beste Motors. The consideration for the transfer has been set at RMB 310.5 million, with a 45-day timeline for execution.
The tribunal has yet to determine the costs associated with the arbitration. Meanwhile, Varroc is analysing the award’s financial and legal implications and will decide on further actions based on expert legal advice.
Also Read: Varroc Engineering striving for double-digit margin by end of FY24, says CMD
“The company is analyzing the Award, including its financial implications, and is assessing the legal options available in this regard. Based on the legal advice, Varroc shall decide on the appropriate course of action,”
Varroc Engineering said in the statement.
Shares of Varroc Engineering Ltd ended at ₹593.85, up by ₹8.45, or 1.44%, on the BSE.
(Edited by : Shoma Bhattacharjee)
