Expert valuation supports USD178 million judgment
KordaMentha was appointed as an independent expert in a shareholder dispute involving palm oil businesses in Indonesia. Despite limited disclosure, our valuation approach was accepted by the Court, resulting in a USD178 million judgment for our client.
KordaMentha was engaged in long-running proceedings in the British Virgin Islands to provide independent expert evidence in a shareholder dispute.
The matter involved a group of palm oil production businesses operating in Kalimantan, Indonesia, with operations dating back to the late 1980s.
The dispute arose from a breakdown in the relationship between investors, with allegations including dividend underpayments, unauthorised asset sales, exclusion from rights issues, and failure to disclose key information.
Our role was to assess the value of shareholdings in the businesses and provide expert evidence to the Court.
How we helped
We were instructed to act as an independent expert witness and determine the value of shareholdings in the disputed entities. Working closely with our instructing solicitors, we navigated complex circumstances and a lack of cooperation from the defendant, who failed to disclose key financial information.
To address this, we developed a roll-forward valuation methodology using historical data and publicly available metrics. This approach enabled us to produce a robust valuation despite the disclosure challenges. Our evidence was delivered through a written report and oral testimony via video conference.
Outcomes acheived
- Court accepted our valuation approach: The roll-forward methodology was considered “measured” and “robust” in the absence of full disclosure.
- Defendant barred from challenging evidence: The Court prohibited the defendant from disputing our expert evidence due to their deliberate non-disclosure.
- High-end valuation adopted: The Court accepted the upper range of our valuation, supporting a strong outcome for our client.
- Judgment secured: Our client was awarded USD178 million plus interest.
- Expert credibility reinforced: The Court found our evidence helpful and reliable in resolving the dispute.
- Cross-border coordination delivered: We worked effectively with legal teams across jurisdictions to support the proceedings.
- Valuation under uncertainty validated: Our methodology demonstrated the ability to deliver robust outcomes despite limited financial data.
- Client outcome maximised: Our approach contributed directly to a favourable and substantial judgment.
