The Court of Appeal (the Supreme Court of Singapore) has dismissed all three appeals filed by Senda International Capital on all the points and allowed majority two of the appeal issues filed by Kiri Industries. The SICC's decision that a 19% discount for lack of marketability (DLOM) be applied in the determining the value of Kiri's share holding in DyStar for the purpose of the buyout order is set aside. DLOM is not to be applied now. The quantum, determined by the SICC, of the notional license fee payable by Longsheng to DyStar for its wrongful exploitation of O288 patent is set aside. The issue is remitted to SICC of the licence fees for the purpose of valuation. The company said that these determinations would enhance value of company's stake substantially. 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 four 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. On a consolidated basis, net profit of Kiri Industries fell 21.7% to Rs 91.04 crore despite of 14.9% rise in net sales to Rs 416.85 crore in Q4 FY22 over Q4 FY21. Powered by Capital Market - Live News |