Kiri Industries hit an upper circuit of 10% at Rs 335.90 after the Singapore International Commercial Court confirmed $603.80 million as the final value of the company's stake in DyStar.
In a statement filed with the bourses today, the company announced that the Singapore International Commercial Court (SICC) vide its judgement dated 3 March 2023, confirmed the final value of company's 37.57% stake in DyStar Global Holdings (Singapore) (DyStar) as $603.80 million as against US$481.60 million, which was valued by the SICC vide its judgement dated 21 June 2021, which is now significantly increased by $122.20 million.
The court of appeal (the Supreme Court of Singapore) vide its judgement dated 6 July 2022 had decided two major points in favour of the Company related to 19% discount for lack of marketability and notional licence fees with respect to exploitation of DyStar's patent by Longsheng and had directed the SICC to give effect of the said Judgement.
The buyout order is to be executed now at the value of US$ 603.80 million by Senda International Capital Ltd, Kiri Industries said in a statement.
Kiri Industries had filed a suit against Senda International Capital regarding its minority stake held in DyStar. Following the suit, the International court had directed Senda to buyout Kiri's minority stake held in DyStar.
In making the buyout order, the SICC held that the value of Kiri's shareholding was to take into consideration the effects of various aspects of oppressive conduct by Zhejiang Longsheng Group Co ("Longsheng"), of which Senda was a wholly-owned subsidiary. The SICC's decision was upheld on appeal (see Senda International Capital v Kiri Industries and others and another appeal [2019] 2 SLR.
Further proceedings then took place before the SICC to determine how Kiri's shareholding was to be valued for the purposes of the buyout order. The SICC delivered various judgments for the valuation proceedings.
These appeals by both Senda and Kiri raise issues arising out of those judgments concerning matters affecting the valuation of DyStar and adjustments for various factors as well as the valuation of Kiri's shareholding and adjustments relevant to that.
Kiri Industries is one of the largest manufacturer and exporter of wide range of dyes, intermediates and chemicals from India.
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