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In the Singapore International Commercial Court of the republic of singapore
[2021] SGHC(I) 6
Suit No 4 of 2017
Between
Kiri Industries Ltd
… Plaintiff 
And
(1)
Senda International Capital Ltd
(2)
DyStar Global Holdings (Singapore) Pte Ltd
… Defendants
judgment
[Companies [Shares]  [Valuation of shares]
 
 
 

 
 
 

This judgment is subject to final editorial corrections approved by the court and/or redaction pursuant to the publisher’s duty in compliance with the law, for publication in LawNet and/or the Singapore Law Reports.
Kiri Industries Ltd
v

Senda International Capital Ltd and another
[2021] SGHC(I) 6
Singapore International Commercial Court — Suit No 4 of 2017
Kannan Ramesh J, Roger Giles IJ and Anselmo Reyes IJ
16 June 2021
21 June 2021    Judgment reserved.
Kannan Ramesh J (delivering the judgment of the court):
    The final valuation of Kiri’s shares in DyStar
1    This is our decision on the final value of the 37.57% shareholding of Kiri Industries Ltd (“Kiri”) in DyStar Global Holdings (Singapore) Pte Ltd (“DyStar”). Our decision herein is the culmination of the following judgments:
(a)    On 3 July 2018, in DyStar Global Holdings (Singapore) Pte Ltd v Kiri Industries Ltd and others and another suit [2018] 5 SLR 1 (the “Main Judgment”), we held (iat [281(a)] that Senda International Capital Ltd (“Senda”) was to purchase Kiri’s 37.57% shareholding in DyStar (“Kiri’s shares”) based on a valuation to be assessed, and (ii) at [281(b)] that Kiri’s shares were to be valued as at the date of the Main Judgment, ie, 3 July 2018 (“the valuation date”). Our findings in the Main Judgment were upheld on appeal in Senda International Capital Ltd v Kiri Industries Ltd and others and another appeal [2019] 2 SLR 1.
(b)    On 12 March 2019, in Kiri Industries Ltd v Senda International Capital Ltd and another [2019] 4 SLR 1, we held, inter alia, that no minority discount for lack of control should be applied to the valuation of Kiri’s shares. This decision was upheld on appeal in Senda International Capital Ltd v Kiri Industries Ltd and others [2020] 2 SLR 1.
(c)    On 21 December 2020, in Kiri Industries Ltd v Senda International Capital Ltd and another [2020] SGHC(I) 27 (the “Valuation Judgment”), we provided an interim valuation of DyStar. We found DyStar’s equity value to be US$1,636m as at the valuation date, subject to further adjustments (the Valuation Judgment at [156] and [312]). Nine issues remained outstanding, pertaining to the adjustments to be made to DyStar’s interim valuation.
(d)    On 17 March 2021, in an oral judgment, we addressed the issues of (i) pre-judgment interest, and (ii) the relief to which Kiri would be entitled if Senda failed to comply with the buy-out order made in [281(a)] of the Main Judgment.
(e)    On 3 June 2021in Kiri Industries Ltd v Senda International Capital Ltd and another [2021] SGHC(I) 2 (the “Valuation Judgment No 2”), we addressed the nine outstanding adjustments to be made to DyStar’s interim valuation. The parties’ experts were directed to tender an agreed calculation for DyStar’s final valuation based on our findings (Valuation Judgment No 2 at [69]).
2    On 16 June 2021, pursuant to our directions, the parties’ experts tendered an agreed calculation for DyStar’s final valuation. The parties’ experts agreed that the value of Kiri’s shares as at the valuation date is US$481.6m.
3    Based on the above, we adjudge the final valuation of Kiri’s shares to be US$481.6m for the purposes of the buy-out order made at [281(a)] of the Main Judgment.
    Costs
4    The Supreme Court Registry will issue directions to parties on the issue of costs.
Kannan Ramesh        Roger Giles             Anselmo Reyes
Judge
 of the High Court    International Judge         International Judge
Dinesh Dhillon, Lim Dao Kai, Margaret Joan Ling, Dhivya Naidu and Serene Chee Yi Wen (Allen & Gledhill LLP) for the plaintiff;
Toh Kian Sing SCCheng Wai Yuen, Mark, Soh Yu Xian, Priscilla and Lim Wee Teck, Darren (Rajah & Tann Singapore LLP) for the first defendant
Teng Po Yew (Drew & Napier LLC) for the second defendant.
 
 
 

SUPREME COURT OF SINGAPORE

21 June 2021

Case summary

Singapore International Commercial Court Suit No 4 of 2017

Kiri Industries Ltd v Senda International Capital Limited and another [2021] SGHC(I) 6

------------------------------------------------------------------------------------------------------

Decision of Kannan Ramesh J, Roger Giles IJ and Anselmo Reyes IJ (delivered by Justice Ramesh)

Outcome: SICC determines final valuation of Kiri Industries Ltd’s shareholding in DyStar Global Holdings (Singapore) Pte Ltd to be US$481.6m.

 

Background facts

In DyStar Global Holdings (Singapore) Pte Ltd v Kiri Industries and others and another suit [2018] 5 SLR 1 (the “Main Judgment”), the SICC held that Senda International Capital Ltd (“Senda”) had engaged in instances of oppressive conduct against Kiri Industries Ltd (“Kiri”). Senda was thus ordered to purchase Kiri’s 37.57% shareholding in DyStar Global Holdings (Singapore) Pte Ltd (“DyStar”), their joint venture. Kiri’s 37.57% shareholding (“Kiri’s shares”) was to be valued as at 3 July 2018 (“the valuation date”). The findings in relation to oppression and the valuation date in the Main Judgment were upheld on appeal in Senda International Capital Ltd v Kiri Industries Ltd and others and another appeal [2019] 2 SLR 1.

In Kiri Industries Ltd v Senda International Capital Ltd and another [2019] 4 SLR 1, the SICC held, inter alia, that no minority discount for lack of control should be applied to the valuation of Kiri’s shares. This decision was upheld on appeal in Senda International Capital Ltd v Kiri Industries Ltd and others [2020] 2 SLR 1.

In Kiri Industries Ltd v Senda International Capital Ltd and another [2020] SGHC(I) 27 (the “Valuation Judgment”), the SICC provided an interim valuation of DyStar. The SICC found DyStar’s equity value to be US$1,636m as at the valuation date (the “Interim Valuation”). Nine issues remained outstanding, pertaining to the adjustments to be made to the Interim Valuation.

In Kiri Industries Ltd v Senda International Capital Ltd and another [2021] SGHC(I) 2 (the “Valuation Judgment No 2”), the SICC addressed the nine outstanding adjustments to be made to the Interim Valuation. The parties’ experts were directed to tender an agreed calculation for DyStar’s final valuation based on the SICC’s findings in the Valuation Judgment No 2.

On 16 June 2021, pursuant to the SICC’s directions, the parties’ experts tendered an agreed calculation for DyStar’s final valuation. They agreed that the value of Kiri’s shares as at the valuation date was US$481.6m.

The Court’s decision

The SICC adjudged the final valuation of Kiri’s shares to be US$481.6m for the purposes of the buy-out order made at [281(a)] of the Main Judgment (at [3]).

The SICC will subsequently address the outstanding issue of costs (at [4]).

This summary is provided to assist in the understanding of the Court’s judgment. It is not intended to be a substitute for the reasons of the Court. All numbers in bold font and square brackets refer to the corresponding paragraph numbers in the Court’s judgment.

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This judgment text has undergone conversion so that it is mobile and web-friendly. This may have created formatting or alignment issues. Please refer to the PDF copy for a print-friendly version.

Version: 1 (21 Jun 2021)