Varroc Engineering Limited — Others, 17-04-2025: Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company

Varroc Engineering Limited has announced a board meeting to discuss the enforcement award received from the Eastern Caribbean Supreme Court, which mandates the transfer of its 50% stake in Varroc TYC Corporation to Beste Motors Co. Ltd. for RMB 310.5 million, after applicable taxes, within 28 days. This award stems from previous arbitration due to breaches of a shareholders' agreement with TYC. The outcome may lead to a significant financial transaction for Varroc, highlighting both the potential for loss in joint venture control and an opportunity for cash flow improvement through the reimbursement of enforcement costs. The market may respond cautiously, given the implications for ownership structure and future strategy.