Welspun Corp has filed a statement of claim against Wasco Coatings Limited and Wasco Energy Limited under the International Chambers of Commerce arbitration rules. The claim, valued between USD 35.5 to 43.5 million, relates to a lost investment opportunity in Wasco Qatar. The dispute centers around an alleged breach of a shareholder agreement and a missed option to acquire shares in a Qatar-based company specializing in concrete weight coating.
Arbitration Commenced
Welspun Corp has initiated arbitration proceedings against Wasco Coatings Limited and Wasco Energy Limited, both subsidiaries of Wasco Berhad, concerning a disagreement regarding an investment opportunity. The arbitration will be conducted under the Rules of Arbitration of the International Chambers of Commerce, with the proceedings based in London.
Details of the Dispute
The core issue traces back to a Shareholder’s Agreement (SHA) dated August 25, 2015, which established a joint venture between Welspun and Wasco Energy. According to Welspun, Wasco Coatings was obligated under the SHA to offer Welspun an option to acquire 25% of its shareholding in any new company established in Qatar. However, Wasco Coatings incorporated Wasco Qatar, a company involved in concrete weight coating, without providing Welspun with the agreed-upon option.
Financial Implications and Claims
Welspun believes that Wasco Coating’s failure to comply with the SHA resulted in the loss of a significant investment opportunity. The company is now seeking compensation in the range of USD 35.5 to 43.5 million for the missed opportunity related to Wasco Qatar, including potential non-monetary compensation.
Source: BSE
