Shanghai (Gasgoo)- On Jan. 13, Luxshare Precision (002475.SZ) said it is terminating its acquisition of a business asset package held by Wingtech's Indian unit, citing asset seizures and freezes that blocked closing. The company has filed for arbitration with the Singapore International Arbitration Centre to recover about 153 million yuan already paid, plus interest.
Image source: company announcement
According to the filing, wholly owned unit Luxshare Communication (Shanghai) Co., Ltd. had signed agreements with Wingtech to acquire the business asset package from Wingtech India. After signing, Luxshare pushed ahead with closing preparations and paid part of the consideration as agreed. However, because certain Wingtech India assets were subject to seizures and freezes, the ownership transfer could not be processed, and the deal has been unable to close.
Luxshare said those closing obstacles were caused by the counterparty and have frustrated the purpose of the asset transfer agreement. To protect the company and all shareholders, another wholly owned subsidiary, Luxshare Lanto India Private Limited, sent Wingtech India a notice terminating the agreement and demanding the return of consideration and other fees totaling 1.977 billion Indian rupees (about 153 million yuan). As Wingtech India did not return the funds as requested, Luxshare Lanto has filed for arbitration with the Singapore International Arbitration Centre, seeking a ruling to terminate the agreement, recover the funds and obtain interest accruing until actual settlement.
Luxshare said the termination will not adversely affect its normal operations or financial position. The company will continue to monitor the arbitration and related matters, and will disclose developments in a timely manner as required by law and regulation.
Notably, Wingtech flagged the dispute late on Jan. 12, and the two sides offered conflicting accounts of the handover. Wingtech said the relevant business asset package in India has been transferred, and only the Indian land still needs the buyer's cooperation to complete ownership transfer. All other target assets in the deal, it said, have completed the required ownership-change registrations.
Image source: company announcement
Wingtech said the parties dispute performance under the India asset package agreement. Although the company sent multiple written notices urging Luxshare Lanto to promptly pay the remaining consideration for the India business asset package — about 160 million yuan under the "India Asset Agreement" — Luxshare Lanto failed to pay on time and, on Dec. 16, 2025, sent a notice unilaterally asserting termination of the "India Asset Agreement."
Responding to Luxshare's arbitration filing, Wingtech said it will submit a response and a counterclaim, seeking to compel Luxshare Lanto to continue performance, pay the remaining consideration and compensate for related losses.
