Kiri Industries Secures Landmark Victory in Singapore Court, Awarded $603.8 Million Buyout Plus Interest

Ahmedabad, India – January 31, 2025 – Kiri Industries Limited (NSE: KIRIINDUS, BSE: 532967) has achieved a major legal victory as the Singapore Court of Appeal ruled in favor of the company, affirming its entitlement to a $603.8 million buyout payment plus 5.33% annual interest from September 3, 2023, until the date of payment. The ruling also mandates that Senda International Capital Limited bear legal costs related to the proceedings.

Court’s Decision: Favorable Outcome for Kiri Industries​

The Supreme Court of Singapore’s Court of Appeal dismissed Senda’s appeal and ruled as follows:

1. Buyout Payment Affirmed: The court upheld Kiri’s right to receive $603.8 million as determined by previous judgments, rejecting Senda’s objections.
2. Priority Payment on DyStar’s En Bloc Sale: Kiri will receive its buyout amount first from the proceeds of DyStar Global Holdings’ en bloc sale.
3. Award of Interest: Kiri is entitled to 5.33% per annum on the buyout sum, calculated from September 3, 2023, until the full amount is paid.
4. Legal Costs Covered by Senda: The court ordered Senda to cover Kiri’s legal costs and reimbursement expenses for both appeals.

Background of the Legal Battle​

The dispute originated from minority shareholder oppression claims filed by Kiri Industries against Senda International Capital, the majority shareholder in DyStar. Kiri sought to exit the joint venture after alleging oppressive corporate governance practices by Senda. A Singapore court had earlier ruled in favor of Kiri, ordering Senda to buy out Kiri’s 37.57% stake in DyStar for $603.8 million. However, Senda failed to complete the buyout, leading to substituted relief in the form of an en bloc sale.

Financial Impact and Industry Implications​

This ruling is a significant win for Kiri Industries, as it ensures full financial recovery and interest compensation for the delay. Additionally, the decision could set a precedent for corporate governance and shareholder rights in joint ventures.

Kiri Industries is a leading player in the dyes, intermediates, and chemicals sector. The enforced payment strengthens its financial position and provides capital for future growth opportunities.

Management Statement​

Kiri Industries stated:

“This ruling reaffirms our faith in the judicial system and ensures that shareholders’ rights are protected. We remain committed to maximizing value for our stakeholders.”

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With this legal resolution, Kiri Industries is expected to focus on expanding its core business, leveraging the capital from the buyout to strengthen its global market position.