Raffles Interior (HKG:1376) has instructed Reed Smith Richards Butler and a barrister-at-law of Des Voeux Chambers to issue a writ against a company from which it had previously acquired a China-based soft drink distributor, a Tuesday bourse filing said.

The fitting-out services provider had agreed to sell its stake in the soft drink company in December 2024 after a unit of the latter made recurrent losses as opposed to the profit guarantee provided by its original vendor.

The firm had also begun suspecting potential fraud and misrepresentation, which became another reason for the disposal.

With the writ of summons, the firm is looking to rescind the original acquisition agreement, have the convertible bonds issued to the vendor as consideration for the acquisition to be cancelled, and get damages for misrepresentation and breach of contract.

The company will make further announcements as and when needed to keep shareholders and potential investors informed of all developments.