(Bangkok, 5 April 2010) - In pursuit of its business growth strategy, Thoresen Thai Agencies Plc. ("TTA") has entered into a strategic partnership with a Philippines petroleum tanker company - Petrolift, Inc. ("Petrolift"). TTA will enter this partnership through Soleado Holdings Pte. Ltd. ("Soleado"), a wholly owned subsidiary of TTA. The investment will increase the scope of TTA's transport business, as well as provide greater diversity and balance, announced M.L. Chandchutha Chandratat, President and Chief Executive Officer of TTA.
M.L. Chandchutha Chandratat, President & CEO of TTA, explained that Soleado will invest USD 27,960,480 to acquire 489,056,155 common shares, representing 38.834% of Petrolift, plus an additional amount not to exceed USD 7,766,800 corresponding to Soleado's pro rata share of the expected increase in the value of Petrolift arising from the acquisition of up to four additional tankers or LPG vessels through December 2010.
Petrolift is the market leader for double-hulled tankers in the Philippines tanker industry, which is an integral part of the Philippines petroleum transportation infrastructure. Petrolift has excellent customers, good charters, and generates stable and predictable cash flows.
Incorporated in the Philippines in 1992, Petrolift has served a growing demand in the domestic petroleum tanker industry. It owns and operates a fleet of nine petroleum tankers/barges and one liquefied petroleum gas (LPG) tanker. The fleet has a total capacity of about 30 million litres transporting fuel such as petroleum, ethanol, and LPG products to all major ports/depots in the Philippines.
"The investment in Petrolift is expected to reduce volatility from our dry bulk shipping and offshore services businesses. The investment represents a significant share in a company with a fleet of potentially up to 14 tankers/barges. Comparatively speaking, the entire investment represents approximately the cost of one modern Supramax vessel today. We believe that this investment will grow our transport business, strengthen our competitiveness, and yield attractive returns to our shareholders," said M.L Chandchutha.
Petrolift is an accredited tankering services contractor for the major oil companies in the Philippines. "About 90% of Petrolift's existing fleet capacity is contracted under fixed-price medium to long-term charters with the oil majors. Petrolift is the only Philippines tanker operator that also serves the oil majors' transport requirements for imports and exports within Southeast Asia," added M.L. Chandchutha.
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 only invested and operated in the dry bulk shipping and related shipping services business. Then the company has also expanded its investment into other business areas, such as offshore services through Mermaid Maritime Public Company Limited, fertilizers and logistics through Baconco Co., Ltd., and coal-related businesses through Merton Group (Cyprus) Limited and Unique Mining Services Public Company Limited.
For further information, please contact:
Thoresen Thai Agencies PLC.
Ravisada Angkeeros or Ornsutee Kanchanomai
Tel: 02 254 8437 ext. 393 or 290
Email: ravisada_a@thoresen.com OR ornsutee_k@thoresen.com