New arbitration brought against SingPost over Famous Holdings share agreement
NEW arbitration proceedings have been commenced against Singapore Post (SingPost) over a share purchase agreement related to Famous Holdings Pte Ltd (FHPL) and its units.
The proceedings were started by Tan Ho Sung in the Singapore International Arbitration Centre, with the notice of arbitration served on May 17, SingPost said in a Monday (May 29) bourse filing.
SingPost and Tan had entered a share purchase agreement in Jan 2013, for the company’s purchase of all of Tan’s shares in FHPL. The sale and purchase of 62.5 per cent of the shares in FHPL was completed in Feb 2013. Tan has exercised his put option for the remaining 37.5 per cent of his FHPL shares, but the sale of this portion has not been completed to date.
He is now seeking declarations regarding his purported legal and beneficial ownership of the balance unsold shares and his fiduciary duties to SingPost in respect of the shares.
He also alleges that in the event he is no longer the beneficial owner of the balance shares, SingPost is “estopped by representation or conduct” from making a claim against him, the company said in its filing.
Given that Tan’s action does not include any claim for damages or other monetary relief, “the potential financial impact of the new arbitration proceedings cannot be quantified at this stage”, SingPost said.
“The company is in consultation with its advisors in relation to the dispute with Tan and will make further announcements as and when there are material developments,” it added.
Tan has had various disputes with SingPost and its units since 2017. He previously commenced arbitration proceedings against SingPost Logistics Investments (SPLI) and FHPL, claiming a purported entitlement to dividends under the balance unsold shares.
All his claims against SPLI and FHPL in the arbitration were dismissed, as SingPost announced on Apr 4.
SingPost shares ended Monday flat at S$0.455.
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