Yuanta Financial : announces an arbitration between Yuanta Securities (Korea) and Anbang related to the sale of the shares of Tong Yang Life Insurance
06/27/2017 | 03:29am EDT
Parties to the legal matter:
Claimants/Respondents to Counterclaim: Yuanta Securities Korea Co., Ltd.; VOGO-TYL Investment Holdings Co.; Vogo II-1 Investment Holdings Co., Ltd.; Vogo II-2 Investment Co., Ltd.; Ming Joo Lee
Respondents/Claimants to Counterclaim: Anbang Group Holdings Co., Ltd.; Anbang Life Insurance Co., Ltd.
Additional Respondent to Counterclaim: VOGO Investment Group
Name of the court or disposing agency: ICC International Court of Arbitration (Hong Kong)
Reference/case numbers of relevant documents: ICC 22819/PTA
Date of occurrence of the event: 2017/06/26
Background and circumstances of the matter (including the property/subject matter under dispute): Claimants brought a request for arbitration with ICC International Court of Arbitration (Hong Kong) against Respondents for release of the funds remaining in the escrow account (approximately KRW 59.7 billion equal to TWD 1.5 billion)("Escrow Amount") under the Shares Purchase Agreement for the sale of the shares of Tong Yang Life Insurance Co., Ltd. ("Tong Yang Life Insurance") by Claimants to Anbang Group Holdings ("SPA"). Anbang Group Holdings and its guarantor, Anbang Life Insurance raised a counterclaim against Claimants for damages for Claimants' breach of the covenants of the SPA (approximately KRW 698 billion equal to TWD 18.5 billion).
Course and progression of handling of the matter: Yuanta Securities (Korea) and other sellers of the shares of Tong Yang Life Insurance have engaged counsels to represent them in the arbitration.
Effect on company finances and business and estimated monetary amount of the effect: There is no material impact on the business and operations of Yuanta Securities (Korea) and YFH. Yuanta Securities (Korea) was advised by the counsels to, together with other four sellers, bring an arbitration for the release of the Escrow Amount. The amount of damages claimed by Respondents under the counterclaim is sought against all five sellers of the shares of Tong Yong Life Insurance based on their own calculation. It is the counsels' opinion that the amount of damages alleged by Anbang Group Holdings is exaggerated and part of the allegations are not true. Moreover, the ratio of the sale by Yuanta Securities (Korea) among all five sellers is merely 4.76%. Therefore, whether Yuanta Securities (Korea) is liable for the damages and the definite amount thereof will not be determined until the examination by the arbitrators.
Countermeasures and status of amelioration: Yuanta Securities (Korea) will take actions in response after reviewing the counterclaim by Respondents.
Any other matters that need to be specified: None
Yuanta Financial Holdings published this content on 26 June 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 June 2017 07:29:12 UTC.