Varroc Engineering Completes Sale of Equity Stake in Varroc TYC Corporation
VarrocCorp Holding B.V., a fully owned subsidiary of Varroc Engineering based in the Netherlands, has successfully executed the transfer of its 50% shareholding in Varroc TYC Corporation, located in the British Virgin Islands (BVI). This transaction, valued at RMB 310.5 million, is subject to applicable withholding taxes, as disclosed in Varroc Engineering’s recent regulatory filing. The buyer, Beste Motors Co. Ltd., also registered in the BVI, has officially acquired this stake along with associated interests in joint venture subsidiaries.
Legal Proceedings and ICC Award Enforcement
The transfer follows the initiation of enforcement proceedings in the Eastern Caribbean Supreme Court. The BVI Court has granted an order in favor of Varroc, allowing the enforcement of an arbitral award issued by the International Chamber of Commerce (ICC). This award, rendered on December 11, 2024, was a result of arbitration initiated by Varroc Engineering due to breaches by TYC of the shareholders’ agreement established on January 29, 2013, along with various articles of association relating to their joint ventures.
Details of the Arbitral Award
According to the ICC award, VarrocCorp Holding B.V. is mandated to complete the transfer of its equity stake to Beste Motors Co. Ltd. within 28 days from the issuance date of the Enforcement Award. The decision aims to resolve ongoing disputes stemming from TYC’s non-compliance with the original agreement.
Conclusion
This strategic divestment marks a significant step for Varroc Engineering, allowing the company to streamline its investments and focus on core operations in the automotive sector.
