Raffles Education Secures Major Arbitral Win: S\$6 Million Award Could Boost Share Value

Key Points from the Announcement

• Raffles Education Limited and its subsidiary, Path Education Corporation Pte. Ltd., have won a significant arbitration case at the Singapore International Arbitration Centre (SIAC).
• The final arbitral award was made in their favour on 2 August 2025, with the company receiving formal notice on 4 August 2025.
• The Respondents have been ordered to pay total damages, legal costs, and interest amounting to over S\$6 million to Raffles Education and Path.
• The award covers damages for misrepresentation, breach of warranties, and overpayment of purchase consideration relating to a share purchase agreement.
• All counterclaims by the Respondents have been dismissed.

Full Details of the Arbitral Award

• Damages Awarded: S\$3,803,783.00, subject to simple interest of 5.33% per annum from 30 August 2018 until full payment.
• Arbitration Costs: S\$149,932.13 awarded to Raffles Education and Path.
• Legal Costs and Disbursements: S\$2,329,745.85 to be paid by the First Respondent.
• Interest on Costs and Disbursements: Simple interest at 5.33% per annum from 2 August 2025 until full payment.
• Dismissal of All Counterclaims: The Respondents’ counterclaim for the balance of the price consideration under the share purchase agreement has been completely rejected.

What Shareholders Need to Know

This development is potentially highly price-sensitive for Raffles Education Limited. The company stands to receive a substantial sum, which could materially improve its cash position and strengthen its balance sheet. The award addresses a longstanding dispute regarding misrepresentation and breach of warranties, reflecting positively on the company’s legal standing and management’s ability to protect shareholder interests.

The award of interest dating back to August 2018 significantly increases the amount receivable, which could further enhance Raffles Education’s financial position once collected. Legal and arbitration costs being fully awarded also limit the company’s expense exposure from this dispute.

Shareholders are strongly advised to monitor developments and exercise caution in trading the company’s shares. The announcement specifically advises investors to refrain from taking any precipitate action and to seek professional advice before making investment decisions.

This outcome could trigger positive sentiment and potentially move the company’s share price, especially once the funds are received and reflected in the company’s financial statements.

Conclusion

The SIAC’s final arbitral award in favour of Raffles Education Limited and its subsidiary is a major legal and financial victory. The company is set to receive a total sum (including damages, interest, and costs) exceeding S\$6 million, with all counterclaims by the opposing party dismissed. This may have a significant positive impact on the company’s future earnings and share valuation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Retail investors should seek professional financial advice and consider their own circumstances before making any investment decisions. The outcome of legal proceedings and the collection of awarded sums may be subject to further risks and uncertainties.

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