Singapore Court Orders Sale Of DyStar, Appoints Receivers

Business

Singapore Court Orders Sale Of DyStar Shares, Appoints Receivers

The Singapore International Commercial Court has ordered en bloc sale of DyStar Global Holdings (Singapore) Pte Ltd’s shares owned by Kiri Industries Ltd (Kiri) and Senda International Capital Ltd (Senda) – a subsidiary of Zhejiang Longsheng Group. Both the shareholders have been engaged in a long legal battle where Kiri Industries owns 37.57% shares in DyStar.

The court appointed Matthew Stuart Becker, Lim Loo Khoon and Tan Wei Cheong of Deloitte & Touche LLP as Receivers to conduct the sale and take all necessary steps in this regard before 31^st December 2025. DyStar and Senda were directed by the court to cooperate and render all assistance that the Receivers may require for completing the sale.

Earlier, the same court had ordered Senda International to buy out the minority shareholding of 37.57% held by Kiri Industries in DyStar at the price of US$ 603.8 million but Senda International could not materialize it. Thus, the court considered an en bloc sale of Kiri’s and Senda’s shareholdings in DyStar with the conditions as below:

a. The en bloc sale of DyStar shall be conducted without any reserve price.

b. The sale of DyStar shall be completed within the long-stop date of 31 December 2025.

The proceeds of the sale, after deducting the remuneration for the Receivers and the expenses of the sale, shall be distributed in the manner that Kiri Industries shall receive US$ 603.8 million in priority; and remaining shall go to Senda. Also, the court did not allowed interest on buyout price and advance payment from DyStar as per the court order shared by Kiri Industries.

DyStar has already clarified that the appointment of receivers by court is solely for the purpose of facilitating sale of the shares of the company. This action does not lead to any change in DyStar’s ongoing business operations as the company is financially healthy and fully managed by its management team.

DyStar is a leading global dyestuff & chemical manufacturer with a broad portfolio of colorants, specialty chemicals, and services. The company was founded in 1995 as a joint venture between Hoechst AG and Bayer Textile Dyes. In 2000, the textile dyes business from BASF was also integrated into it. In early 2010, DyStar Group was acquired by Zhejiang Longsheng Group and Kiri Industries Limited.

Earlier, the same court had ordered Senda International to buy out the minority shareholding of 37.57% held by Kiri Industries in DyStar at the price of US$ 603.8 million but Senda International could not materialize it. Thus, the court considered an en bloc sale of Kiri’s and Senda’s shareholdings in DyStar

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