Disposition of the Asset of a Subsidiary Company
Ref. No. COR:MS/EL10031e/py
28 October 2010
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. Thor Pilot on behalf of Thor Pilot Shipping Co., Ltd., a wholly owned subsidiary company of TTA, as follows:
1. The Parties Involved:
Seller: Thor Pilot Shipping Co., Ltd.
Buyer: Allseas Holdings Limited, British Virgin Islands
Relationship between Buyer and Seller: None
2. Details of the Asset Disposed:
M.V. Thor Pilot is a general cargo vessel with a rated capacity of 33,400 DWT and was built in 1986.
3. General Characteristics of the Transaction:
M.V. Thor Pilot was sold at a price of USD 5,825,000 (United States Dollars Five Million Eight Hundred and Twenty Five Thousand), or Baht 173,558,787.50 (Baht One Hundred Seventy Three Million Five Hundred Fifty Eight Thousand Seven Hundred Eighty Seven and Fifty Satangs), using a USD/THB exchange rate of 29.7955, which is the current market price.
4. The net book value of M.V. Thor Pilot including dry-docking expenses, vessel supplies and spare parts as of 27 October 2010 was approximately Baht 77.14 million. After deducting expenses from selling the vessel, including commissions, the accounting gain from the sale, net of taxes, is approximately Baht 64.04 million.
After the sale of M.V. Thor Pilot, the Thoresen fleet will have an average size of 29,260 DWT and an average age of 16.08 years.
5. Benefit from the Transaction:
The sale is in line with prevailing dry bulk shipping conditions, in which older vessels become less competitive and less able to meet operating costs. The Board of Directors of Thor Pilot Shipping Co., Ltd. unanimously resolved to sell the said vessel, and the proceeds from the sale will be applied towards our new build vessel program or younger second-hand vessel acquisitions.
6. Size of the Transaction:
The total amount received from selling M.V. Thor Pilot equals USD 5,825,000 (United States Dollars Five Million Eight Hundred and Twenty Five Thousand), or
Baht 173,558,787.50 (Baht One Hundred Seventy Three Million Five Hundred Fifty Eight Thousand Seven Hundred Eighty Seven and Fifty Satangs), using a USD/THB exchange rate of 29.7955. The size of the transaction equals 0.36% of the total assets of TTA and its subsidiaries as of 30 June 2010 (the total assets of TTA and its subsidiaries as of 30 June 2010 amounted to Baht 48,784,491,182).
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:
28 October 2010
Thoresen Thai Agencies Public Company Limited
M.L. Chandchutha Chandratat
President & Chief Executive Officer
Ms. Mantanee Surakarnkul