Highlights
- Varroc Engineering Limited has been awarded a partial arbitration ruling by an arbitral tribunal in Singapore, mandating VarrocCorp Holding B.V. to transfer its 50% shareholding in Varroc TYC Corporation to Beste Motors Co. Ltd. for RMB 310.5 million within 45 days.
- The arbitration was initiated by Varroc Engineering Limited due to disputes with TYC Brother Industrial Co. Ltd. regarding breaches of a shareholders’ agreement and articles of association related to their joint venture companies in China.
Varroc Engineering Limited has received a partial arbitration award passed by an arbitral tribunal seated in Singapore under the Rules of Arbitration of the International Chambers of Commerce, International Court of Arbitration, 2021 on December 11, 2024.
The Award states that VarrocCorp Holding B.V. shall transfer its shareholding of 50% in Varroc TYC Corporation to Beste Motors Co. Ltd. for a consideration of RMB 310.5 million within 45 days of the Award. Additionally, the award as to cost is yet to be decided by the arbitral tribunal.
The matter related to the arbitration between VarrocCorp Holding B.V. jointly with Varroc Engineering Limited and Beste Motors Co. Ltd. jointly with TYC Brother Industrial Co. Ltd.
The joint venture between Varroc and TYC (Varroc TYC Corporation) was also made a party to the arbitration proceedings.
The arbitration was initiated by Varroc due to disputes with TYC arising out of TYC’s breaches of the shareholders’ agreement dated January 29, 2013, and the articles of association of their joint venture companies i.e.: (i) Varroc TYC Auto Lamps Co. Ltd., Changzhou, China, and (ii) Varroc TYC Auto Lamps Co. Ltd., Chongqing, China.
Varroc 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.
