Stark faces 23 billion baht arbitration dispute with German companies Leoni AG

Stark Corporation, a SET-listed company, is facing an arbitration dispute with German corporations Leoni AG and Leoni Bordnetz-Systeme GmbH. Unbelievable are claiming 608 million euros (23 billion baht) from Stark, alleging a breach of their gross sales and purchase agreement, Bangkok Post reported.
According to a filing to the Stock Exchange of Thailand yesterday, the case refers to Stark’s train of withdrawal rights under an settlement with the German companies final yr. Following this, Leoni AG and Leoni Bordnetz-Systeme GmbH filed an arbitration case with the German Arbitration Institute (DIS) on March 2.
The claimants have estimated the entire claim quantity at 608 million euros, asserting that Stark violated its obligation underneath the agreement for the purchase price of 598 million euros, together with preliminary compensation of 10 million Euros.
On June 9, Stark’s board resolved to acknowledge participation within the Stark arbitration case to guard the company’s pursuits and approved the submission of a response and counterclaim with the DIS, which is tentatively scheduled for June 19.
According to the company’s filing to the SET on December 13, Stark’s board convened on May 23, 2022, and held a rare shareholders’ meeting on September 23, 2022, approving a share buy settlement with Leoni AG and Leoni Bordnetz-Systeme GmbH. The proposed acquisition involved 100 percent of shares in Leoni Kabel GmbH, a restricted legal responsibility company registered underneath German legal guidelines, and Leonische Holding Inc, a company registered underneath the legal guidelines of Delaware in the US. The offers had a ceiling buy worth of 560 million euros.
The filing said that over the past few months, a quantity of occasions, opposed modifications, and new data have emerged because the company entered the transaction, resulting in a fabric negative monetary impact on the goal companies’ business as a complete and affecting the viability of the transaction. These modifications could not have been anticipated when the share purchase settlement was signed.
Stark decided to train its rights under the settlement to withdraw from the purchase.
In a separate problem, Stark’s bondholders have requested the Securities and Exchange Commission to encourage the company to expedite the completion of its particular audit report..

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