TTA's subsidiary acquires 48.46% shares of UMS to expand into a niche logistics business that specialises in the coal industry
As part of Thoresen Thai Agencies Public Company Limited (TTA)'s growth-oriented business diversification strategy, a transaction to acquire 48.46% of UMS from its two largest shareholders through its subsidiary, Hermelin Shipping Co., Ltd., has been agreed. This acquisition brings TTA direct synergies with its dry bulk shipping, ship brokerage, and most recent coal mine investment.
M.L. Chandchutha Chandratat, Group Managing Director and Chief Executive Officer of Thoresen Thai Agencies Public Company Limited ("TTA"), announced that, "Hermelin, our subsidiary, has entered into a Share Purchase Agreement to acquire Unique Mining Services Public Company Limited ("UMS")'s shares at Baht 23 per share from Mr. Phaibul Chalermsaphayakorn and Mr. Chaiwat Cruecha-Em, of 52,858,520 shares and 20,790,646 shares, respectively, which amounts to 48.46% of UMS shares, and UMS warrants of 3,222,100 units, equivalent to 5.55% of the remaining UMS warrants from Mr. Chaiwat Cruecha-Em at Baht 14.6579 per unit. Overall, the total amount for these purchases is Baht 1,741,160,037.59."
"We are excited to add UMS into our business group. UMS is a coal trading and logistics company that owns barges, land, jetties, warehouses, and trucks. UMS has a very good business model to provide "just in time" delivery of coal to its clients. This acquisition is in line with our strategic direction to grow our infrastructure business group. Furthermore, UMS is an existing client of TTA, so this acquisition should generate direct synergies with the dry bulk shipping business, ship brokerage, and our most recent coal mine investment in the Philippines. TTA is confident that the coal industry has very good growth potential, and we want to participate in it", M.L. Chandchutha added.
Hermelin, which will be renamed to Athene Holdings Ltd., expects to purchase the UMS shares and warrants within October 2009 after all condition precedents stated in the Share Purchase Agreement dated 15 October 2009 between the two major shareholders of UMS are met. After this acquisition, Hermelin must tender for the remaining shares and warrants under the Office of the Securities and Exchange Commission's regulations, a transaction that should be concluded in December.
UMS was established in 1994. It engages in the coal trading business by importing coals to serve the demands of its various industrial customers in Thailand and distributing coals to UMS's small and medium sized industrial buyers. UMS is a listed company in the Market for Alternative Investment ("MAI") since 2004. Currently, it has four subsidiaries being UMS Coal Briquette Ltd., UMS Lighter Ltd., UMS Transport Ltd., and UMS Port Services Ltd. These subsidiaries have been established to operate business activities that support the main business of UMS, such as coal briquettes manufacturing, marine transportation, land transportation, and jetty business.
Thoresen Thai Agencies Public Company Limited is amongst the top 50 companies listed on the Stock Exchange of Thailand with high trading liquidity. Its investment strategy is to grow through a diversified business portfolio of transport, energy, and infrastructure assets, both domestically and internationally. TTA is recognised as a leader in the dry bulk shipping industry, providing liner and tramp services. The company has also expanded its investment into other business areas that can support current businesses such as an investment in offshore services related to oil and natural gas drilling and subsea engineering in the Southeast Asia region through Mermaid Maritime Public Company Limited.