Disposition of the Asset of a Subsidiary Company

Ref. No. COR:MS/EL09035e/pc

26 October 2009

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 Jasmine on behalf of Thor Jasmine Shipping Co., Ltd., a wholly owned subsidiary company of TTA, as follows:

1. The Parties Involved:
Seller: Thor Jasmine Shipping Co., Ltd.
Buyer: Frankseddy Management Inc., Belize
Relationship between Buyer and Seller: None

2. Details of the Asset Disposed:
M.V. Thor Jasmine is a general cargo vessel with a rated capacity of 36,633 DWT and was built in 1985.

3. General Characteristics of the Transaction: M.V.
Thor Jasmine was sold at a price of USD 5,180,000.00 (United States Dollars Five Million and One Hundred Eighty Thousand only), or Baht 172,650,073 (Baht One Hundred Seventy Two Million Six Hundred Fifty Thousand and Seventy Three only) using a USD/THB exchange rate of 33.33013, which is the current market price.

4. The net book value of M.V. Thor Jasmine including dry-docking expenses, vessel supply and spare part as of 23 October 2009 was approximately Baht 93.92 million. After deducting expenses from selling the vessel, including commissions, the accounting gain from the sale, net of taxes, is approximately Baht 49.81 million.

After the sale of M.V. Thor Jasmine, the Thoresen fleet will consist of 35 vessels with an average size of 26,862 DWT and an average age of 18.83 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 Jasmine Shipping Co., Ltd. unanimously resolved to sell the said vessel, and the proceeds from the sale will be applied towards our new build vessel programme or younger second-hand vessel acquisitions.

6. Size of the Transaction:
The total amount received from selling M.V. Thor Jasmine equals USD 5,180,000.00 (United States Dollars Five Million and One Hundred Eighty Thousand only), or Baht 172,650,073 (Baht One Hundred Seventy Two Million Six Hundred Fifty Thousand and Seventy Three only) using a USD/THB exchange rate of 33.33013. The size of the transaction equals to 0.43% of the total assets of TTA and its subsidiaries as of 30 June 2009 (the total assets of TTA and its subsidiaries as of 30 June 2009 amounted to Baht 40,472,515,772).

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:
23 October 2009

 

Yours faithfully,
Thoresen Thai Agencies Public Company Limited

 

--------------------------------
(Mrs. Thitima Rungkwansiriroj)
Group Head-Finance and Accounting

 

(Ms. Mantanee Surakarnkul)
Company Secretary

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