(Yicai) Jan. 14 -- China’s Luxshare Precision Industry said it has initiated arbitration proceedings after the Indian government seized assets the Apple supplier had agreed to acquire from Wingtech Technology, preventing the transfer’s completion and prompting it to seek to end the deal.

Luxshare has filed with the Singapore International Arbitration Centre, asking that the deal to buy Indian manufacturing facilities from smartphone assembler Wingtech be terminated, the Dongguan-based company announced late yesterday.

“Based on the substantive delivery obstacles caused by reasons attributable to Wingtech, the objective of the asset acquisition agreement can no longer be achieved,” it said.

On Jan. 12, Wingtech Technology said the asset transfer had been completed, and only the land in India still required Luxshare’s cooperation to complete the ownership change. Wingtech said it has repeatedly demanded that Luxshare unit Luxshare Liantao settle the remaining transaction consideration of about CNY160 million (USD22.9 million), but payment has yet to be made.

Luxshare Liantao has paid part of the agreed consideration, but the deal cannot be completed because the relevant assets have been seized and frozen, its parent company said, adding that the unit has issued a termination notice to Wingtech India, requesting a refund of the INR2 billion (USD22.2 million) already paid.

Wingtech’s shares [SHA: 600745] closed 0.6 percent higher at CNY38.80 (USD5.56) apiece in Shanghai today. Luxshare [SHE: 002475] fell 1.8 percent to end at CNY53.58 in Shenzhen.

As part of a strategic shift toward its semiconductor business, Wingtech began divesting its original equipment manufacturing and original design manufacturing operations last year. The Jiaxing-based firm agreed early in 2025 to sell an integrated business assets package to Luxshare Precision and affiliated companies for about CNY4.4 billion (USD630.6 million).

Aside from the India-related assets, the sale of other Wingtech businesses has proceeded relatively smoothly.

Wingtech's consumer product integration business has been in the red for many years, and the company was included in the US Department of Commerce's trade restriction list at the end of 2024. After being added to the list, Wingtech faced difficulties in securing new orders, its has said. Last January, the firm also warned of the potential risk of tax penalties for its India subsidiary.

Editor: Martin Kadiev