SINGAPORE - An arbitration tribunal in India has concluded that Indian education services company Educomp has breached a share purchase agreement with Singapore-listed Raffles Education Corporation Ltd by failing to complete the sale and purchase transaction.
Raffles Education was awarded 163.2 million rupees (S$3.52 million) in damages by the tribunal and interest thereon from Aug 19, 2015, until payment at 5.33 per cent, the company said in a filing with the Singapore Exchange on Monday morning (April 17).
"Pursuant to the award, the Raffles subsidiaries will not be completing the sale and purchase and will be taking steps to proactively enforce the terms of the award in the relevant jurisdictions including in Singapore and in India," said the company.
Raffles Education had proposed that its subsidiaries would purchase the remaining 41.82 per cent equity interest in Educom-Raffles Higher Education Limited (ERHEL) from Educomp Asia Pacific Pte Ltd and Educomp Professional Education Limited. The Raffles subsidiaries, Raffles Education Investment (India) Pte Ltd and Raffles Design Pvt Ltd, currently hold 58.12 per cent of ERHEL.
The Raffles subsidiaries are also to be paid a significant portion of their legal costs and expenses in the arbitration, amounting to S$750,000 and US$550,000.