Stark Corporation Public Company Limited (SET: STARK) has announced that the company will participate in the arbitration case filed by LEONI AG and LEONI Bordnetz-Systeme GmbH against the termination of the Sales Purchase Agreement by STARK.
STARK noted that following the exercise of the withdrawal rights under the SPA, LEONI AG and LEONI Bordnetz-Systeme GmbH (the “Claimants”) have filed a case for arbitration with the German Arbitration Institute (DIS) on March 2, 2023. The Claimants have estimated the total claim amount to be EUR 608,000,000. Under such claim, the Claimants claimed that the Company violated its obligation under the SPA and to pay the purchase price in the amount of EUR 598,000,000, together with preliminary compensation in the amount of EUR 10,000,000. In this regard, the Board of Directors of the Company has resolved on June 9, 2023 to acknowledge the participation in the said arbitration case in order to protect the Company’s interests and to approve the submission of the response and counterclaim against the said case with the German Arbitration Institute (DIS) tentatively on June 19, 2023.
The share price of STARK fell 9% in the morning session to THB0.10 per share.
Thai Stock Exchange allowed a temporary trading for investors to buy or sell their shares on STARK after the securities were suspended by the Exchange for not submitting its earnings.
The share price was trading above the THB2.00 level before the suspension.