VarrocCorp Holding B.V., Netherlands, wholly owned subsidiary of Varroc Engineering, has received the consideration of RMB 310.5 million less applicable withholding tax against the transfer of its 50% shareholding in Varroc TYC Corporation, British Virgin Islands (along with its consequential interest in the JV subsidiaries) to Beste Motors Co. Ltd., British Virgin Islands, Varroc Engineering disclosed in their regulatory filing.
The enforcement proceedings were initiated in the Eastern Caribbean Supreme Court, British Virgin Islands (BVI Court) for the enforcement of the ICC Award, and the BVI Court has passed the order in favour of Varroc enforcing the same.
The matter relates to the ICC Singapore’s arbitral award passed on December 11, 2024, under arbitration 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 Varroc TYC Auto Lamps Co. Ltd., Changzhou, China, and Varroc TYC Auto Lamps Co. Ltd., Chongqing, China.
The BVI Award stated that VarrocCorp Holding B.V., Netherlands, shall transfer its 50% shareholding in Varroc TYC Corporation, British Virgin Islands (and consequently, its interest in the JV subsidiaries) to Beste Motors Co. Ltd., British Virgin Islands, within 28 days of the date of the Enforcement Award.
