With respect to Affle India Limited (“Affle”) minority investment in Talent Unlimited Online Services Private Limited (“Bobble”), Affle demands full inspection on Bobble and has secured Delhi High Court order for the same. Affle has also filed an execution petition in the Delhi High Court to enforce the full inspection rights on Bobble as per the Shareholder’s Agreement. Bobble has refused to comply and is blatantly in contempt of court orders.
In July 2023, Delhi High Court in its order upheld Affle’s right of inspection as per the Shareholder’s Agreement and Bobble was asked to comply promptly. Bobble failed to comply with the Court orders and Affle is therefore pursuing the contempt petition in Delhi High Court against Bobble.
During the pendency of the disputes in Arbitration in SIAC and Delhi International Arbitration Centre (“DIAC”) where Affle is the aggrieved claimant, Xiaomi exited majority of its investment in Bobble by selling shares to Krafton – a Korean listed company with significant dealings with Tencent in China. Krafton had earlier failed to make payment to Affle to acquire a stake in Bobble, till the extended long stop date of the agreement in October 2022 as Krafton failed to provide the mandatory declarations required by our Authorised Dealer Banker for compliances under FEMA.
Speaking on the Development, Affle Said: Affle has consistently invoked its right of inspection on Bobble for over 18 months on account of suspicious activities, breaches of fiduciary duties and regulatory compliances, including financial and data leakages. Bobble management (supported by Saif Partners / Elevation Capital) wants to “put a lid” on all illegal conduct of Bobble and they have scuttled Affle’s pre-emption rights and inspection rights systematically. They are highly connected and trying to use all means to arm twist Affle into a low-balled unfair settlement and exit. Notably, Affle was ready to exit from Bobble but Krafton did not make payment to Affle’s bank account in October 2022 and yet through some other suspicious transactions Krafton managed to become a shareholder of Bobble and it is also supporting Bobble’s continued poor governance conduct including evasion of court orders for inspection. We have zero tolerance for poor governance, wilful breaches and financial misconduct and we are pursuing justice at all levels.
