Welspun Corp seeks $35.5m-$43.5m in arbitration over lost Qatar investment

Welspun Corp Limited has filed a statement of claim against Wasco Coatings Limited and Wasco Energy Limited under the Rules of Arbitration of the International Chambers of Commerce, 2021, in London. The dispute stems from a shareholders' agreement (SHA) signed on August 25, 2015, for a joint venture company, Welspun Wasco Coatings Private Limited. Wasco Coatings Limited, a subsidiary of Malaysia-based Wasco Berhad, subsequently signed a deed of adherence to the SHA.

According to Welspun Corp, the SHA obliged Wasco Coatings to offer it the option to acquire 25% of Wasco Coating's shareholding in a company incorporated in Qatar and other Middle East regions before establishing a new concrete weight coating plant. However, around 2019, Wasco Coatings incorporated "Wasco Qatar" for concrete weight coating without providing Welspun Corp the required option notice. This alleged failure to comply resulted in Welspun Corp losing an investment opportunity in Qatar.

Welspun Corp has filed a claim for $35.5 million to $43.5 million related to the lost investment opportunity in Wasco Qatar, along with other non-monetary claims and reliefs. The company deems this disclosure material, as the claim value triggered its policy on determination of materiality at the time of filing the statement of claim. The arbitration proceedings are ongoing.