Kiri Industries has formally rejected a new proposal from receivers concerning its stake in DyStar, marking a significant development in the ongoing negotiations. The chemical company has expressed serious concerns regarding the financial implications and uncertainty surrounding the proposed deal structure.

Rejection of Receivers' Proposal

Kiri Industries has cited specific concerns over cash flow requirements and the overall uncertainty associated with the receivers' latest proposal for the DyStar stake. This rejection represents a clear stance by the company against the current terms being offered by the receivers.

Opposition to Deadline Extension

Kiri Industries has also taken a firm position against extending the current deadline to March 2026. The company believes that the proposed timeline extension would not serve its interests or resolve the underlying concerns with the deal structure.

Court Appeal for Alternative Bidders

In a strategic move, Kiri Industries has formally requested the Singapore Court to consider offering the deal to other potential bidders. This request suggests that the company believes alternative proposals might better address its concerns and provide more favorable terms.

Company's Strategic Position

The rejection and court request indicate Kiri Industries' commitment to securing a more suitable arrangement for its DyStar stake. Key aspects of the company's position include:

• Rejection of current receiver proposal due to cash concerns
• Opposition to March 2026 deadline extension
• Request for court to explore alternative bidders
• Focus on reducing deal uncertainty

This development in the DyStar stake negotiations demonstrates Kiri Industries' proactive approach to protecting its interests while seeking more favorable deal terms through the Singapore Court system.

Kiri Industries Limited has formally objected to an alternative transaction structure proposed by court-appointed receivers for the sale of its 37.57% stake in DyStar Global Holdings (Singapore) Pte. Ltd. The company has refused to consent to the new arrangement and has submitted its objections to the Singapore International Commercial Court (SICC).

Alternative Transaction Structure Details

The receivers have proposed a restructured deal involving both a share buyback and partial sale:

Company's Key Objections

Kiri Industries has raised several concerns with the SICC regarding the proposed structure:

Financial and Operational Concerns

• Cash Repatriation: Objects to partial repatriation of DyStar's cash from China, insisting all non-operational cash reserves be repatriated to Singapore
• Exit Certainty: Lacks certainty regarding complete exit from DyStar operations
• Automatic Termination: Demands the amended SPA should automatically terminate if not fully performed by January 31, 2026

Legal and Procedural Issues

• Receiver Powers: Questions whether share buyback falls outside receivers' powers under the appointment order
• Rights Protection: Concerns that participation may compromise existing court-ordered rights
• Extension Opposition: Objects to further extensions, advocating for alternative bidders

Court Extension Request

The receivers have applied to the SICC for extending the long-stop date from December 31, 2025, to March 31, 2026. This extension aims to provide runway for:

Transaction Timeline and Deposits

The deal has faced multiple delays since its initial announcement:

Zhejiang Longsheng Group has deposited an additional USD 5.00 million, bringing the total escrow amount to USD 13.59 million. This deposit may be forfeited at the receivers' discretion if transactions are not completed by the extended deadline.

Next Steps

Kiri Industries continues to take legal advice from its counsels and will pursue all necessary steps to protect its legal and commercial interests. The company has not consented to any extensions granted by the receivers and maintains its position against the alternative transaction structure. The SICC's decision on the receivers' extension application and the company's objections will determine the future course of this prolonged transaction.