Tuesday, October 09, 2012
Information regarding legal dispute
As previously reported—most recently in IFS’s latest interim report—IFS has since 2002 been involved in a legal dispute concerning the partly-owned company IFS Sri Lanka. The counterparty has now initiated legal proceedings against IFS with the Singapore International Arbitration Centre, on the basis of a shareholders agreement between the parties, with a now quantified claim for damages amounting to US$ 43 million plus interest in the amount of US$ 33 million calculated on an average annual interest of 10 percent starting from 1999. Since the beginning of this legal dispute, IFS has deemed the counterparty’s allegations as completely unsubstantiated and without any merit. Based on the information that IFS has been provided with to date and supported by its external legal counsels, IFS’s position with respect to the dispute remains unchanged: IFS rejects the counterparty’s claims as being frivolous and completely unmeritorious and unfounded, and rejects the claims in their entirety.
IFS has been involved since 2002 in a legal dispute concerning the partly-owned company IFS Sri Lanka. This dispute was initiated in Sri Lankan court by one of the other shareholders and pertained to an alleged violation of the articles of association and an agreement between the shareholders. The Court of First Instance dismissed the plaintiff’s action in 2008, upon which the plaintiff appealed to the Sri Lankan Court of Appeal. That appeal was subsequently withdrawn in November 2010.
IFS is a public company (XSTO: IFS) founded in 1983 that develops, supplies, and implements IFS Applications™, a component-based extended ERP suite built on SOA technology. IFS focuses on agile businesses where any of four core processes are strategic: service & asset management, manufacturing, supply chain and projects. The company has 2,000 customers and is present in more than 60 countries with 2,800 employees in total. Net revenue in 2011 was SKr 2.6 billion.
IFS discloses the information provided herein pursuant to the Financial Instruments Trading Act (1991:980) and/or the Securities Markets Act (2007:528). The information was submitted for publication on October 9, 2012 at 8:30 p.m. (CEST).