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 6, 2023, the arbitrator (the “arbitrator”) in the Company’s ongoing arbitration with Greater Sail Limited (“GSL”) in Hong Kong issued the first partial award, dismissing all of GSL’s claims
against the Company. In response, on April 20, 2023, GSL initiated proceedings before the High Court of the Hong Kong Special Administrative Region, Court of First Instance (the “Hong Kong Court”) to set aside the arbitrator’s
first partial award because it allegedly violated Hong Kong’s public policy. Following the hearing on December 15, 2023, the Hong Kong Court issued a judgment on December 29, 2023 on GSL’s application. The Hong Kong Court
abstained from determining whether the first partial award violated Hong Kong’s public policy, but instead remitted the award back to the arbitrator to address any public policy concerns and take such action that would eliminate any grounds to
set aside the first partial award.
As also previously disclosed, on July 28, 2023, the arbitrator issued a second partial award quantifying the
Company’s counterclaims against GSL. On August 4, 2023, GSL applied to set aside the second partial award on the basis that the arbitrator exceeded his authority. In its December 29, 2023 judgment, the Hong Kong Court dismissed
GSL’s claim that the arbitrator exceeded his authority. Subsequently, the Hong Kong Court clarified that it granted the Company leave to enforce the second partial award.
As further previously disclosed, on April 23, 2021, the arbitrator 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 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 by the Hong Kong Court enforcing the
arbitrator’s interim preservation order (the “HK Preservation Order”). On April 29, 2023, the arbitrator issued an order, effective as of May 8, 2023, discharging his interim preservation order. In its December 29, 2023
judgment, the Hong Kong Court extended the HK Preservation Order pending the arbitrator’s further decisions.