SingPost to make second partial award in arbitration related to Famous Holdings
SINGPOST said it will be making a further payment in a long-standing arbitration case that involves a dispute over a share-purchase agreement, the mainboard-listed company said in an exchange filing on Friday (Feb 4).
This is the second partial award SingPost S08 is making in an arbitration that pertains to disputes between SingPost and Tan Ho Sung over a share-purchase agreement and shareholders' agreement in relation to Famous Holdings (FHPL) and its subsidiaries.
In particular, the transfer of Tan's remaining 37.5 per cent of the shares in FHPL to SingPost following the exercise of his put option for those shares is central to the dispute.
Tan had commenced arbitration proceedings against SingPost owing to differences between the parties on the final valuation.
SingPost noted that on Jun 3, 2020, the Singapore International Arbitration Centre had ruled in its favour on material accounting and computational issues under the share-purchase agreement, which are the most significant determinants of any sums to be paid by either party for the transfer of Tan's remaining 37.5 per cent shares in FHPL.
However, the tribunal had directed both to see if they could agree on the final amount payable for the transfer of the remaining shares, failing which the tribunal would make a final determination.
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On Jan 19, the tribunal issued a further partial award that applies 1 of the computation methodologies that were submitted by the parties within the parameters of the first partial award.
This follows "divergence" between them on the precise computation for the final amount payable for Tan's shares in FHPL, SingPost said.
SingPost will now pay Tan for his FHPL shares at a "fair value" that is not expected to have a material impact on the company's financials, the company said, without disclosing the amount.
It added that the tribunal will hear from the parties on issues of costs at a later date or if there is further disagreement.
READ MORE: Arbitration over share-purchase dispute issued partial award, says SingPost
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