Disposition of the Asset of a Subsidiary Company
Ref. No. COR:MS/EL07002e/ms
22 January 2007
Subject: Disposition of the Asset of a Subsidiary Company
To : The President of the Stock Exchange of Thailand
Thoresen Thai Agencies Plc. ("TTA") hereby reports the sale of M.V. Hermes on behalf of Hermes Shipping Co., Ltd., a wholly owned subsidiary company of TTA, as follows:
1. The Parties Involved:
Seller: Hermes Shipping Co., Ltd. Buyer: Shasta Shipping Ltd., Gibraltar Relationship between Buyer and Seller: None
2. Details of the Asset Disposed:
M.V. Hermes is a general cargo vessel with a rated capacity of 15,240 DWT and was built in 1977.
3. General Characteristics of the Transaction:
M.V. Hermes was sold at a price of USD 1,548,430 (United States Dollars One Million Five Hundred Forty Eight Thousand Four Hundred and Thirty), or Baht 55,608,457 (Baht Fifty Five Million Six Hundred Eight Thousand Four Hundred and Fifty Seven using a USD/THB exchange rate of 35.9128), which is the current market price.
4. The net book value of M.V. Hermes as of 22 January 2007 was approximately Baht 25.27 million. After deducting expenses from selling the vessel, including commissions, the accounting gain from the sale is approximately Baht 28.11 million.
After the sale of M.V. Hermes, the Thoresen fleet will consist of 44 vessels with an average size of 27,620 DWT and an average age of 17.89 years.
5. Benefit from the Transaction:
The sale is in line with TTA's policy of gradually lowering the average age of the fleet and increasing the average vessel size. The Board of Directors of Hermes Shipping Co., Ltd. unanimously resolved to sell the said vessel, and the proceeds from the sale will be used to prepay some existing debt.
|Thoresen Thai Agencies Plc.||Ref. No. COR:MS/EL07002e/ms|
6. Size of the Transaction:
The total amount received from selling M.V. Hermes equals USD 1,548,430 (United States Dollars One Million Five Hundred Forty Eight Thousand Four Hundred and Thirty), or Baht 55,608,457 (Baht Fifty Five Million Six Hundred Eight Thousand Four Hundred and Fifty Seven using a USD/THB exchange rate of 35.9128). The size of the transaction equals 0.24% of the total assets of TTA and its subsidiaries as of 30 September 2006 (the total assets of TTA and its subsidiaries as of 30 September 2006 amounted to Baht 23,140,393,849).
When this transaction is included with other asset dispositions in the past six months, it is not subject to the Rules, Procedures and Disclosure of Information of the Stock Exchange of Thailand regarding the Connected Transactions or the Acquisition and Disposition of Assets of Listed Companies.
7. Delivery Date:
22 January 2007
(M.R. Chandram S. Chandratat)
(M.L. Chandchutha Chandratat)