Varroc Engineering Ltd Receives Partial Arbitration Award of RMB 310.5 Million from Beste Motors Co. Ltd. and TYC Brother Industrial Co. Ltd.

Varroc Engineering Ltd has disclosed the details of a partial arbitration award passed by an arbitral tribunal seated in Singapore. The award was passed on 11th December 2024 in the matter of arbitration between VarrocCorp Holding B.V. jointly with Varroc Engineering Limited and Beste Motors Co. Ltd. jointly with TYC Brother Industrial Co. Ltd. The dispute arose due to TYC's breaches of the shareholders’ agreement dated January 29, 2013 and the articles of association of their joint venture companies. As per the award, VarrocCorp Holding B.V. is required to transfer its shareholding of 50% in Varroc TYC Corporation to Beste Motors Co. Ltd. for a consideration of RMB 310.5 million within 45 days of the Award. The Company is currently analyzing the Award and its financial implications, and is assessing the legal options available.