Ref. No. COR:MS/EL06005e/st
3 March 2006
Subject: Disposition of the Assets of Subsidiary Companies
To: The President of the Stock Exchange of Thailand
Thoresen Thai Agencies Plc. (TTA) hereby reports the sale of two
vessels on behalf of two wholly owned subsidiary companies of TTA as follows:
1. Heron Shipping Co., Ltd.
A. The Parties Involved:
Seller: Heron Shipping Co., Ltd.
Buyer: Spiridon Trading & Maritime Agency Sarl., Lebanon
Relationship between Buyer and Seller: None
B. Details of the Asset Disposed:
M.V. Heron is a general cargo vessel with a rated capacity of 20,712
DWT and was built in 1977. The Buyer intends to buy the vessel for
further trading.
C. General Characteristics of the Transaction:
M.V. Heron was sold at a price of USD 2,350,000 (United States Dollars
Two Million Three Hundred Fifty Thousand only), or Baht 90,757,000 (Baht
Ninety Million Seven Hundred Fifty Seven Thousand using a USD/THB
exchange rate of 38.62), which is the current market price.
D. Net Book Value of M.V. Heron as of 3 March 2006 was approximately Baht
42.37 million. After deducting expenses from selling the vessel,
including commissions, the accounting gain from the sale is
approximately Baht 45.61 million.
2. Herakles Shipping Co., Ltd.
A. The Parties Involved:
Seller: Herakles Shipping Co., Ltd.
Buyer: Unisoft International Limited, Gibraltar
Relationship between Buyer and Seller: None
Thoresen Thai Agencies Plc.
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B. Details of the Asset Disposed:
M.V. Herakles is a general cargo vessel with a rated capacity of
21,068 DWT and was built in 1976. The Buyer intends to scrap the
vessel, which contains 5,212.30 lightweight tons of steel.
C. General Characteristics of the Transaction:
M.V. Herakles was sold at the price of USD 1,784,744 (United States
Dollars One Million Seven Hundred Eighty Four Thousand Seven Hundred
Forty Four only) or Baht 68,926,813.28 (Baht Sixty Eight Million Nine
Hundred Twenty Six Thousand Eight Hundred Thirteen and Twenty Eight
Satangs using a USD/THB exchange rate of 38.62), which is the current
market price.
D. Net Book Value of M.V. Herakles as of 3 March 2006 was approximately
Baht 57.20 million. After deducting expenses from selling the vessel,
including commissions, the accounting gain from the sale is
approximately Baht 10.47 million.
After the sale of M.V. Heron and M.V. Herakles, the Thoresen
fleet will consist of 46 vessels with an average size of 27,058 DWT
and an average age of 17.34 years.
3. Benefit from the Transactions:
The sales are 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 Heron Shipping Co., Ltd. and Herakles
Shipping Co., Ltd. unanimously resolved to sell the said vessels,
and the proceeds from the sales will be used for further investments.
4. Size of the Transactions:
The total amount received from selling M.V. Heron and M.V. Herakles
equals USD 4,134,744 (United States Dollars Four Million One Hundred
Thirty Four Thousand Seven Hundred and Forty Four), or Baht
159,683,813.28 (Baht One Hundred Fifty Nine Million Six Hundred
Eighty Three Thousand Eight Hundred Thirteen and Twenty Eight Satangs
using a USD/THB exchange rate of 38.62). The size of the transactions
equals 0.66% of the total assets of TTA and its subsidiaries as of 31
December 2005 (the total assets of TTA and its subsidiaries as of 31
December 2005 amounted to Baht 24,110,257,288).
When these transactions are included with other asset dispositions
in the past six months, they are 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.
Thoresen Thai Agencies Plc.
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5. Delivery Date:
The delivery date of M.V. Heron and M.V. Herakles is on 3 March 2006.
Yours faithfully,
__________________________ _____________________
(M.L.Chandchutha Chandratat) (Ms. Nuch Kalyawongsa)
Managing Director Director, Group Finance/Accounting