Kiri Industries Ltd v Senda International Capital Ltd: Valuation of Shares in DyStar

In Kiri Industries Ltd v Senda International Capital Ltd, the Singapore International Commercial Court, comprising Justices Kannan Ramesh, Roger Giles, and Anselmo Reyes, delivered a judgment on June 16, 2021, concerning the final valuation of Kiri Industries Ltd's 37.57% shareholding in DyStar Global Holdings (Singapore) Pte Ltd. The court determined the final valuation of Kiri's shares to be US$481.6m for the purposes of the buy-out order.

1. Case Overview

1.1 Court

Singapore International Commercial Court

1.2 Outcome

Final valuation of Kiri's shares adjudged to be US$481.6m.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Judgment on the final valuation of Kiri Industries' shares in DyStar. The court determined the value to be US$481.6m for the buy-out order.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
DyStar Global Holdings (Singapore) Pte LtdDefendantCorporationNeutralNeutral
Kiri Industries LtdPlaintiffCorporationValuation of shares determinedWon
Senda International Capital LtdDefendantCorporationValuation of shares determinedLost

3. Judges

Judge NameTitleDelivered Judgment
Kannan RameshJudge of the High CourtYes
Roger GilesInternational JudgeNo
Anselmo ReyesInternational JudgeNo

4. Counsels

Counsel NameOrganization
Teng Po YewDrew & Napier LLC
Lim Dao KaiAllen & Gledhill LLP
Serene Chee Yi WenAllen & Gledhill LLP
Dinesh DhillonAllen & Gledhill LLP
Margaret Joan LingAllen & Gledhill LLP
Dhivya NaiduAllen & Gledhill LLP
Lim Wee Teck DarrenRajah & Tann Singapore LLP
Toh Kian Sing SCRajah & Tann Singapore LLP
Cheng Wai YuenRajah & Tann Singapore LLP
MarkRajah & Tann Singapore LLP
Soh Yu XianRajah & Tann Singapore LLP
PriscillaRajah & Tann Singapore LLP

4. Facts

  1. Kiri owned 37.57% shareholding in DyStar.
  2. Senda was ordered to purchase Kiri's shares based on a valuation.
  3. The shares were to be valued as of July 3, 2018.
  4. An interim valuation of DyStar was previously provided.
  5. Parties' experts agreed on a final valuation of US$481.6m.

5. Formal Citations

  1. Kiri Industries Ltd v Senda International Capital Ltd and another, Suit No 4 of 2017, [2021] SGHC(I) 6
  2. DyStar Global Holdings (Singapore) Pte Ltd v Kiri Industries Ltd and others and another suit, , [2018] 5 SLR 1
  3. Senda International Capital Ltd v Kiri Industries Ltd and others and another appeal, , [2019] 2 SLR 1
  4. Kiri Industries Ltd v Senda International Capital Ltd and another, , [2019] 4 SLR 1
  5. Senda International Capital Ltd v Kiri Industries Ltd and others, , [2020] 2 SLR 1
  6. Kiri Industries Ltd v Senda International Capital Ltd and another, , [2020] SGHC(I) 27
  7. Kiri Industries Ltd v Senda International Capital Ltd and another, , [2021] SGHC(I) 2

6. Timeline

DateEvent
Main Judgment issued, ordering Senda to purchase Kiri's shares.
Judgment held that no minority discount should be applied to the valuation.
Valuation Judgment provided an interim valuation of DyStar.
Oral judgment addressed pre-judgment interest and relief for non-compliance.
Valuation Judgment No 2 addressed outstanding adjustments to the interim valuation.
Parties' experts tendered an agreed calculation for DyStar's final valuation.
Judgment reserved.

7. Legal Issues

  1. Valuation of Shares
    • Outcome: The court determined the final valuation of Kiri's shares to be US$481.6m.
    • Category: Substantive
    • Related Cases:
      • [2018] 5 SLR 1
      • [2019] 2 SLR 1
      • [2019] 4 SLR 1
      • [2020] 2 SLR 1
      • [2020] SGHC(I) 27
      • [2021] SGHC(I) 2

8. Remedies Sought

  1. Order for Senda to purchase Kiri's shares
  2. Determination of the final value of shares

9. Cause of Actions

  • No cause of actions

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Chemicals

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
DyStar Global Holdings (Singapore) Pte Ltd v Kiri Industries Ltd and others and another suitSingapore International Commercial CourtYes[2018] 5 SLR 1SingaporeUpheld the order for Senda to purchase Kiri's shares in DyStar.
Senda International Capital Ltd v Kiri Industries Ltd and others and another appealCourt of AppealYes[2019] 2 SLR 1SingaporeUpheld the findings in the Main Judgment.
Kiri Industries Ltd v Senda International Capital Ltd and anotherSingapore International Commercial CourtYes[2019] 4 SLR 1SingaporeHeld that no minority discount should be applied to the valuation of Kiri's shares.
Senda International Capital Ltd v Kiri Industries Ltd and othersCourt of AppealYes[2020] 2 SLR 1SingaporeUpheld the decision that no minority discount should be applied.
Kiri Industries Ltd v Senda International Capital Ltd and anotherSingapore International Commercial CourtYes[2020] SGHC(I) 27SingaporeProvided an interim valuation of DyStar, subject to further adjustments.
Kiri Industries Ltd v Senda International Capital Ltd and anotherSingapore International Commercial CourtYes[2021] SGHC(I) 2SingaporeAddressed the nine outstanding adjustments to be made to DyStar's interim valuation.

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

  • Valuation
  • Shares
  • Buy-out order
  • Shareholding
  • Minority discount

15.2 Keywords

  • Valuation
  • Shares
  • Kiri Industries
  • Senda International
  • DyStar
  • Singapore
  • Commercial Court

17. Areas of Law

Area NameRelevance Score
Valuation of Shares90
Shares80
Company Law75
Commercial Disputes50
Arbitration30

16. Subjects

  • Company Law
  • Share Valuation