Vienna – Semperit Group has issued a statement concerning three arbitrations against its Thai joint venture partner Sri Trang-Agro Industry Public Co Ltd Group and the JV company Siam Sempermed Corp. Ltd (SSC), respectively.
The 6 May release from the Austrian group said: “A final award was rendered in favour of Semperit in the arbitration proceeding against the joint venture partners concerning the possibility to pass board resolutions with a reduced quorum.
“The arbitral tribunal decided that the Sri Trang Group nominated directors of SSC cannot and may not block SSC's decision-making and also the Casting Vote of the Semperit nominated chairman, by not participating in board meetings.”
According to Semperit, the JV partners have been ordered to pay the costs of the arbitration proceedings and of the ICC Court and to reimburse around €2.8 million to Semperit.
There will be no change "for the time being" in Semperit’s current method of consolidation (at equity) in relation to SSC, the statement said.