Highlights

  • Semnet has issued a writ of summons seeking approximately US$4.2 million (£3.3 million) in damages for alleged breaches of fiduciary and contractual duties.
  • Mediation efforts in December 2025 failed to produce a formal settlement agreement.
  • GSTechnologies’ shares were trading at GBX 0.44, down 74.25% over the past year.

GSTechnologies Ltd (LSE:GST) has announced a significant development concerning its 66.67% owned subsidiary, Semnet Pte. Ltd, as legal proceedings intensify against the former sellers of the business. The dispute centres on alleged breaches of fiduciary and contractual duties under a Sale and Purchase Agreement (SPA) signed in December 2023. The company confirmed that Semnet has formally issued and served a writ of summons seeking approximately USD 4.2 million (around £3.3 million) in damages.

Arbitration Moves to Formal Court Action

GSTechnologies initially issued a notice of arbitration on 18 July 2025 against Choo Seet EE and Zheng Kang Wen Mervyn, the original sellers of Semnet under the SPA dated 5 December 2023. The arbitration notice followed concerns relating to compliance with agreed contractual terms.

A mediation hearing was subsequently held in early December 2025, as referenced in the company’s interim results released on 18 December 2025. The mediation aimed to establish a formal settlement between the parties.

However, no agreement was reached.

With settlement discussions concluded without resolution, Semnet has now formally escalated the matter by issuing a writ of summons against the Sellers and Hoi Yan (‘Daphane’) Chong, a former Semnet manager.

Alleged Breaches and Damages Claim

The claims relate to alleged breaches of fiduciary and contractual duties, including obligations under the SPA. According to the company, these alleged actions have had a negative impact on Semnet’s business operations.

The total damages being sought amount to approximately USD 4.2 million, equivalent to around £3.3 million based on current exchange rates.

The writ marks a transition from arbitration proceedings to formal legal enforcement, signalling a decisive step in pursuing the claims.

Market Context

GSTechnologies’ shares were trading at GBX 0.44 on 13 February at 10:11am, down 0.077 GBX (14.99%) on the day. Over the past year, the stock has declined by 74.25%, reflecting wider market pressures and company-specific developments.

The escalation of legal proceedings marks a new phase in GSTechnologies’ dispute involving its majority-owned subsidiary, Semnet. With mediation efforts concluded and formal claims now filed, attention will turn to the progression of court proceedings and any potential financial implications. The company has indicated that further announcements will follow as developments arise.

FAQs

  1. What is the Semnet dispute about?

The dispute concerns alleged breaches of fiduciary and contractual duties under the Sale and Purchase Agreement signed on 5 December 2023 for the acquisition of Semnet.

  1. How much is being claimed in damages?

Semnet is seeking approximately US$4.2 million, equivalent to around £3.3 million.

  1. What happens next?

The matter will proceed through formal legal channels following the issuance of the writ of summons. GSTechnologies has stated it will update shareholders as appropriate.