NAM TAI PROPERTY INC.
Form 6-K
CONTENTS
The Board of Directors of Nam Tai
Property Inc. (the “Company”), a company incorporated under the laws of the British Virgin Islands, is providing the following updates. Unless otherwise indicated, references here to “$” are expressed in U.S. dollars.
Hong Kong Arbitration and Litigation Update
Set-Aside Proceedings
As previously disclosed in the Company’s filings with the Securities and Exchange
Commission, on April 23, 2021 the arbitrator (the “arbitrator”) in the Company’s ongoing arbitration with Greater Sail Limited (“GSL”) in Hong Kong granted GSL an interim preservation order requiring, among other
things, that the Company not dissipate the funds held by Triumph Commitment (Hong Kong) Limited, a subsidiary of the Company, in its Hong Kong Credit Suisse account (the “CS Account”) and any traceable proceeds of monies that GSL paid the
Company under the previously disclosed private placement conducted in 2020 (whereby the Company issued and sold approximately 16.1 million shares of the Company for approximately $146.9 million). On April 29, 2021, GSL obtained an
order before the High Court of the Hong Kong Special Administrative Region, Court of First Instance (the “Hong Kong Court”) enforcing the arbitrator’s interim preservation order (the “HK Preservation Order”).
As previously disclosed, (i) on April 6, 2023 the arbitrator issued the first partial award, dismissing all of GSL’s claims against the
Company; (ii) on April 29, 2023, the arbitrator issued an order, effective as of May 8, 2023, discharging the HK Preservation Order; and (iii) on July 28, 2023, the arbitrator issued a second partial award quantifying the
Company’s counterclaims against GSL. Further, on April 20, 2023, GSL initiated proceedings before the Hong Kong Court to set aside the arbitrator’s first partial award. On August 4, 2023 GSL applied to set aside the second
partial award. The initial hearing before the Hong Kong Court took place on October 4, 2023, whereby the Hong Kong Court considered GSL’s application to set aside the arbitrator’s first partial award and the status of the HK
Preservation Order. The hearing was then adjourned.
The continuation of the hearing before the Hong Kong Court took place as scheduled on
December 15, 2023. The Hong Kong Court made no determinations at this hearing and reserved judgment. The HK Preservation Order remains in place. The Hong Kong Court is required to issue a judgment within six months of this hearing.
Anti-Suit Injunction
As previously disclosed, in
December 2021 GSL filed a lawsuit (the “GSL Shenzhen Litigation”) before the Shenzhen Intermediate People’s Court in the People’s Republic of China against the Company, Nam Tai Group Limited (“NTG”), Nam Tai Investment
(Shenzhen) Co., Ltd. (“NTI”), and Zastron Electronic (Shenzhen) Co. Ltd. (“Zastron”), each of which are wholly owned subsidiaries of the Company, alleging that GSL owns (i) equity held by NTG in NTI representing a
$45 million capital contribution, and (ii) equity held by NTI in Zastron representing a RMB50 million capital contribution. On July 7, 2023, the arbitrator issued an anti-suit injunction ordering GSL to take all steps necessary
to withdraw the GSL Shenzhen Litigation. On August 29, 2023, GSL took out an application to set aside the arbitrator’s anti-suit injunction before the Hong Kong Court.
The Hong Kong Court heard GSL’s application on December 11, 2023. The Hong Kong Court issued a decision at the hearing, dismissing GSL’s
application. The Hong Kong Court further ordered GSL to take all necessary steps to promptly dismiss the GSL Shenzhen Litigation.