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TTA Acquires Strategic Stake in South Vietnam Deepwater Port

Back Nov 22, 2010

(Bangkok, 22 November 2010) - Thoresen Thai Agencies Plc. (“TTA”) invests Baht 346.38 million to acquire a strategic stake in Baria Serece, which controls Phu My Port, South Vietnam’s largest dry cargo deepwater port, capable of receiving up to 6 million metric tons of agricultural products, coal, and fertiliser.

Soleado Holdings Pte. Ltd. (“Soleado”), TTA’s wholly owned investment company for projects, assets, or companies outside of Thailand, has agreed to purchase the entire 20% ownership in Baria Joint Stock Company of Service for Import Export of Agro Forestry Products and Fertilizers (“Baria Serece”) in Vietnam from Yara Asia Pte. Ltd., a provider of nitrogen-based mineral fertilisers and industrial products.

M.L. Chandchutha Chandratat, President and CEO of TTA, revealed: “The decision is in line with TTA’s business strategy of acquiring businesses that are adjacent or add value to our existing ones. Baria Serece owns and operates Phu My Port, which is fully equipped with modern facilities, warehouses, and a bonded warehouse complex. We have been studying Baria Serece and its growth for the past five years and believe that this investment creates natural synergies with Baconco Co., Ltd. (“Baconco”), which was TTA’s first material investment in Vietnam. Baconco is primarily known as a manufacturer and trader of fertilisers and supplier of new seeds and pesticides.”

“Located right next door to Phu My Port, Baconco’s warehouse capacity can be used to capture cargo flows that cannot be currently handled by the Port. In addition, part of Baconco’s future strategy is to increase its land and warehouse capacity and become a strong partner to Phu My Port. With additional warehouse capacity, cargo volume through Phu My Port can increase, generating higher revenues and profits to the Port and Baconco. The acquisition is consistent with TTA’s business strategy to invest further in our Infrastructure Group, which currently achieves the highest returns on capital among our three lines of business,” M.L. Chandchutha said.

Situated in a highly strategic location, Phu My Port is on the Thi Vai River, about 17 miles from the open sea and adjacent to the Phu My I Industrial Park. It has secured volume of 3.28 million tonnes annually on long-term contracts from its major clients, according to the CEO.

“Rising traffic flows and infrastructure development are expected in the foreseeable future due to the significant industrial investments being made in the Baria-Vung Tau area. Phu My Port is expected to continue to enjoy competitive advantages relative to existing and emerging ports in the area, primarily due to its long-track record, fully equipped facilities, and transport connections,” added M.L. Chandchutha.

Baria Serece was established in 1993 as a joint venture enterprise and was converted to a joint stock company incorporated under the laws of Vietnam in 2007 with the charter capital of USD 15 million.

About TTA
Thoresen Thai Agencies Public Company Limited (“TTA”) is a strategic investment holding company listed on the Stock Exchange of Thailand. Its investment strategy is to grow through a balanced and diversified business portfolio of transport, energy, and infrastructure assets, both domestically and internationally. Previously, TTA has primarily invested in the dry bulk shipping and related shipping services businesses. The company has since expanded its investments into other business areas, such as offshore services through Mermaid Maritime Public Company Limited, fertilisers and logistics through Baconco Co., Ltd., coal-related businesses through Merton Group (Cyprus) Limited and Unique Mining Services Public Company Limited, petroleum tankers through Petrolift, Inc, and ports through Baria Joint Stock Company of Service for Import Export of Agro Forestry Products and Fertilizers.

 

For media inquiries, please contact
Thoresen Thai Agencies Plc. - Corporate Communications Department
Ravisada Angkeeros Ravisada_a@thoresen.com or
Ornsutee Kanchanomai ornsutee_k@thoresen.com
Tel. 02 254 8437 ext. 393, 290