Varroc Engineering Limited announced a partial arbitration award of RMB 310.5 million in its ongoing dispute with Beste Motors Co. Ltd. and TYC Brother Industrial Co. Ltd. (together referred to as “TYC”). The dispute stems from alleged breaches of the shareholders’ agreement and articles of association concerning their joint ventures in China.
The arbitration, conducted under the ICC Rules in Singapore, requires VarrocCorp Holding B.V., a wholly-owned subsidiary of Varroc, to transfer its 50% stake in the joint venture Varroc TYC Corporation to Beste Motors Co. Ltd. for RMB 310.5 million within 45 days. The arbitration costs are yet to be determined.
Varroc is currently evaluating the award’s implications and exploring legal options based on expert advice.
Key Highlights:
- Opposing Parties: Beste Motors Co. Ltd., TYC Brother Industrial Co. Ltd., and the joint venture Varroc TYC Corporation.
- Share Transfer: 50% stake in the joint venture to Beste Motors for RMB 310.5 million.
- Timeline: Completion of the transaction within 45 days.