Electronics Production | March 02, 2012
Damages awarded to Sievi Capital and Scanfil EMS
Court of Arbitration ordered Ojala-Yhtymä Ltd. and its shareholders to pay EUR 2 million in damages to Sievi Capital plc and Scanfil EMS Ltd.
With the judgment issued on February 29, 2012, the court of arbitration has ordered Ojala-Yhtymä Ltd and its shareholders to pay a total of EUR 2 million and interest to Sievi Capital plc and Scanfil plc’s subsidiary Scanfil EMS Ltd and to pay the companies’ legal expenses in the matter in full. Furthermore, Ojala was obligated to pay the court of arbitration’s expenses and fees in full. The compensation less legal expenses will be divided equally between Sievi Capital plc and Scanfil EMS Ltd. In its award, the court of arbitration confirmed all of Sievi Capital plc’s and Scanfil EMS Ltd’s claims and the opinion that Ojala was not entitled not to execute the agreed merger. The judgement of the court of arbitration is final. The court of arbitration has dismissed Ojala´s counterclaim against Sievi Capital plc and Scanfil EMS Ltd in its entirety. Earlier on 25 March 2011, Sievi Capital plc announced that the General Meeting of Ojala had decided not to execute the merger of Ojala and Scanfil EMS Ltd, a subsidiary of Sievi Capital plc at the time and currently of Scanfil plc. Sievi Capital plc and Scanfil EMS Ltd considered the merger agreement signed on 1 November 2010 was definitive and that it obligates the parties to execute the merger with the terms agreed on in the merger agreement. Ojala unilaterally announced that its General Meeting had decided not to execute the merger. Scanfil EMS Ltd implemented all of the measures required of it by the merger agreement. Sievi Capital plc and Scanfil EMS Ltd decided, as announced on 27 April 2011, to initiate arbitration proceedings against Ojala and its shareholders and claim two million (2,000,000) euro as contractual penalty on the basis of the merger agreement as well as legal and the court of arbitration’s expenses and fees. Sievi Capital plc announced on 16 November 2011 that Ojala and its shareholders have brought the counterclaim for a compensation of two million (2,000,000) euro and claim for both legal and the court of arbitration's expenses and fees.