AGPL estimates OSLabs, known as Indus OS, to be valued at around $ 90 million and has refused to sell its 25 percent stake at a lower value.
The company operates the âIndus App Bazaarâ app store, which includes over four lakh apps that are available in English and 12 Indian languages ââ- Hindi, Gujarati, Marathi, Tamil, Telugu, Urdu, Odia, Punjabi, Malayalam, Bengali, Assamese and Kannada.
AGPL had filed an injunction against Indus OS’s decision to authorize the sale of its shares in PhonePe, which the fintech firm was contesting in a Singapore court.
Both AGPL and Indus OS are registered in Singapore.
âAGPL participated in more than 7 court hearings in the Singapore High Court from May 19, 2020 to June 18, 2021. As of June 18, 2021, PhonePe has clearly lost the Singapore litigation, âAGPL told.
However, fintech firm PhonePe and OSLabs have disproved AGPL’s claims of winning the lawsuit.
AGPL announced that PhonePe lost its existing voting rights in the OSLabs general meeting at the final hearing in the Singapore High Court on June 18, given the orders issued by the court.
According to the AGPL, OSLabs’ pending resolutions for PhonePe’s 92 percent acquisition of OSLabs Pte Ltd have been voided by the Singapore High Court.
It added that the decisions taken by OSLabs to issue new shares, aimed at diluting existing shareholders, have also been invalidated by the court.
“Therefore, it follows that all corporate actions taken by OSLabs under the invalid resolutions may be considered invalid unless specifically approved by the SIAC arbitration board,” said AGPL.
In an email response, PhonePe said that Omidyar Networks, JSW, Micromax, etc. transferred their shares in Indus OS in accordance with the transaction agreed by the parties who signed the term sheet, but only AGPL denies, though it was one of the signatories of the term sheet for the stock sale.
AGPL claimed that the termsheet authorizing the sale of shares in Indus OS expired on March 12th and that the data and signature pages of the PDF could be tampered with to extend the expired validity without corresponding change or approval.
PhonePe will not be able to use its voting rights according to the court order to pass resolutions.
When contacted, Indus OS completely denied all statements made by AGPL.
“All statements are misleading and fraught with misrepresentation. The issues raised by AGPL are the subject of pending disputes between the parties in arbitration and before the courts in Singapore to resolve these issues. Accordingly, given the pre-litigation disputes, OSLabs is neither bound nor held it is appropriate to comment on or engage in statements made by AGPL, “said Indus OS.
PhonePe said AGPL had made false statements and the matter was in court and a final decision had not been made.
“The court has only ordered OSLabs to hold an extraordinary general meeting in connection with an issue for which certain written resolutions have been passed,” said a spokesman for PhonePe.
PhonePe claims that when the Indus OS board of directors approved the resolution to sell its shares on May 3, the day the AGM was held, the fintech firm was not a shareholder in Indus OS and that it was not locked.
“It is made clear that the court has ordered the holding of general meetings with existing shareholders,” said the Walmart-owned company.
All of Affle’s allegations of low ratings in the present transaction are false and a poor attempt to justify his own illegal and Malafic acts.
“When Affle and everyone else signed the term sheet, they agreed to the rating offered by PhonePe as that was a key phrase … What changed within a month was that the correct rating that is comfortable for all investors suddenly turned low -Balled is referred to as “rating when nothing material changed in the status of OsLabs,” said PhonePe.