Kiri Industries v Senda International Capital: Share Valuation Dispute

The Singapore International Commercial Court addressed the valuation of Kiri Industries Ltd’s shares in DyStar Global Holdings (Singapore) Pte Ltd, following a prior finding of oppressive conduct by Senda International Capital Ltd. The Court of Appeal remitted the issue of a notional license fee for unauthorized patent use by Zhejiang Longsheng Group Co, Ltd. On 27 February 2023, the court determined the final valuation of Kiri’s shares to be US$603.8m.

1. Case Overview

1.1 Court

SINGAPORE INTERNATIONAL COMMERCIAL COURT

1.2 Outcome

Final valuation of Kiri’s shares adjudged to be US$603.8m for the buy-out order.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Valuation of Kiri Industries' shares in DyStar following a buy-out order due to Senda International's oppressive conduct. The court determined the final valuation to be US$603.8m.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
DyStar Global Holdings (Singapore) Pte LtdDefendantCorporationNeutralNeutral
Kiri Industries LtdPlaintiffCorporationJudgment for PlaintiffWon
Senda International Capital LtdDefendantCorporationJudgment against DefendantLost

3. Judges

Judge NameTitleDelivered Judgment
Kannan RameshJudge of the Appellate DivisionYes
Roger GilesInternational JudgeNo
Anselmo ReyesInternational JudgeNo

4. Counsels

Counsel NameOrganization
See Chern YangDrew & Napier LLC
Audie Wong Cheng SiewDrew & Napier LLC
Teng Po YewDrew & Napier LLC
Lim Dao KaiAllen & Gledhill LLP
Dhivya Rajendra NaiduAllen & Gledhill LLP
Margaret Joan Ling Wei WeiAllen & Gledhill LLP
Dinesh Dhillon SinghAllen & Gledhill LLP
Cheng Wai Yuen MarkRajah & Tann Singapore LLP
Soh Yu Xian PriscillaRajah & Tann Singapore LLP
Lim Wee Teck DarrenRajah & Tann Singapore LLP
Chew XiangRajah & Tann Singapore LLP
Toh Kian Sing SCRajah & Tann Singapore LLP

4. Facts

  1. Kiri held a 37.57% shareholding in DyStar.
  2. Senda was found liable for oppressive conduct against Kiri.
  3. A buy-out order was granted, requiring Senda to purchase Kiri's shares.
  4. The valuation date for the shares was set as 3 July 2018.
  5. The Court of Appeal remitted the issue of the notional license fee.
  6. The annual tonnage of related products was found to be 53,550 tonnes.
  7. The final valuation of Kiri's shares was determined to be US$603.8m.

5. Formal Citations

  1. Kiri Industries Ltd v Senda International Capital Ltd and another, Suit No 4 of 2017, [2023] SGHC(I) 4

6. Timeline

DateEvent
Valuation date for Kiri's shareholding in DyStar
SICC valued Kiri’s shares in DyStar at US$481.6m
Kiri's valuation expert revised calculations
Judgment reserved

7. Legal Issues

  1. Valuation of Shares
    • Outcome: The court determined the final valuation of Kiri’s shares to be US$603.8m.
    • Category: Substantive
    • Sub-Issues:
      • Discount for lack of marketability
      • Notional licence fee calculation
    • Related Cases:
      • [2023] SGHC(I) 3
      • [2021] 3 SLR 215
      • [2021] 5 SLR 111
      • [2022] SGCA(I) 5
  2. Oppressive Conduct
    • Outcome: The court previously found Senda liable for oppressive conduct against Kiri.
    • Category: Substantive

8. Remedies Sought

  1. Buy-out Order
  2. Valuation of Shares

9. Cause of Actions

  • Oppressive Conduct

10. Practice Areas

  • Commercial Litigation
  • Valuation Disputes

11. Industries

  • Chemicals

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Kiri Industries Ltd v Senda International Capital Ltd and anotherSingapore International Commercial CourtYes[2023] SGHC(I) 3SingaporeProvides the factual backdrop and procedural history of the case.
Kiri Industries Ltd v Senda International Capital Ltd and anotherSingapore International Commercial CourtYes[2021] 3 SLR 215SingaporeDealt with the issue of compensation for unauthorized use of DyStar's patent and the concept of a notional license fee.
Kiri Industries Ltd v Senda International Capital Ltd and anotherSingapore International Commercial CourtYes[2021] 5 SLR 111SingaporeRefers to the initial valuation of Kiri's shares in DyStar by the SICC.
Kiri Industries Ltd v Senda International Capital Ltd and another and other appeals and other mattersCourt of AppealYes[2022] SGCA(I) 5SingaporeRemitted the issue on the value of the notional licence fee back to the SICC.
Senda International Capital Ltd v Kiri Industries LtdCourt of AppealYes[2022] SGCA(I) 10SingaporeRegarding the principles for the assessment of costs for SICC proceedings.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Share Valuation
  • Buy-Out Order
  • Oppressive Conduct
  • Notional Licence Fee
  • Related Products
  • Discount for Lack of Marketability

15.2 Keywords

  • share valuation
  • buy-out order
  • oppressive conduct
  • Kiri Industries
  • Senda International
  • DyStar

17. Areas of Law

Area NameRelevance Score
Share Valuation80
Company Law75
Minority Oppression60
Commercial Disputes50

16. Subjects

  • Company Law
  • Valuation
  • Shareholder Disputes