OSIM sued over its shares in TWG Tea

LIFESTYLE products firm OSIM International has been served a writ of summons by The Wellness Group Pte Ltd and its chairman, Manoj Murjani, over its shares in TWG Tea yesterday.

"The claim in the writ of summons relates to the recent subscription by the company (OSIM) and Paris Investment of the shares in TWG Tea and other disputes," said OSIM.

"The Wellness Group and Manoj claimed that the issuance of shares was an act of minority oppression and is in breach of the terms of the shareholders agreement dated March 18, 2011, entered into between the company (OSIM), Paris Investment, The Wellness Group, and TWG Tea," it added.

The Wellness Group also alleged that the other shareholders and directors of TWG Tea have oppressed The Wellness Group's interests as a member of TWG Tea.

OSIM first acquired a 35 per cent stake in TWG Tea in April 2011 for $31.36 million. This was raised to 45 per cent last July, and 53.7 per cent in October.

Last month, OSIM raised its stake in the luxury tea company to 70 per cent, when TWG Tea undertook a rights issue to raise $25 million.

The Wellness Group said it has asked for a reversal of the recent transfers in shareholding of TWG Tea and for damages to be assessed.

In a response to the writ of summons yesterday, OSIM said: "The board believes that the allegations are unmeritorious and groundless, and hence, the company intends to vigorously defend the claim, and is currently seeking legal advice to refute the claim as well as to file counterclaim against The Wellness Group and Mr Murjani."