ICTSI Group Invests in Thai Company

December 14, 1999 PSE CIRCULAR FOR BROKERS NO. 3178-99 ICTSI Group invests In Thai company International Container Terminal Services, Inc., through a subsidiary, is buying into a Thai company, which holds the 3-year concession for the A2 Terminal in the Laem Chabang Port in Thailand. ICTSI and subsidiary, ICTSI International Holdings Corp. (IIHC), signed last Friday a Joint Venture Agreement with Thai Laem Chabang Terminal Co. Ltd. (TLT), Ban Saen Mahanakorn Limited Partnership (BSM), Nava Inland Transport Co. Ltd. (NIT) and Repute International Ltd. (TI), enabling the ICTSI Group to invest in TLT. Under the agreement, the parties commit to increase the capitalization of TLT as may be required to fund the completion of the A2 Terminal Project. Expected cost of development in Baht 1.2 billion. LexLib Initially the shareholdings of the parties will be: ICTSI Group 49 per cent, BSM 33 per cent, NIT eight per cent, and TI 10 per cent. It was also agreed on that TLT shall enter into an agreement with IIHC whereby IIHC shall provide management and technical services to TLT for the development, management and operation of the A2 Terminal. IIHC holds ICTSI's interests in its foreign operations. TLT holds the 30-year concession for the A2 Terminal. It is 80 per cent owned by BSM, and 20 per cent owned by NIT. BSM is a construction company with 18 years experience. NIT is a transport company. TI is a Thai company owned 49 per cent by IIHC, but is managed and controlled by IIHC. cdlex TLT was established on 12 September 1996 with an initial registered capital of Baht 200 million. It successfully bid for a lease granted by the Port Authority of Thailand (PAT) to implement the A2 multi-purpose terminal project on a build-operate-transfer basis. The 30-year lease contract was signed last 16 September 1996 between PAT and TLT, which became effective on 1 October 1996. BSM and NIT invited ICTSI to provide the resources, experience and expertise to complete the construction and development of the A2 Terminal Project. Located within the Laem Chabang Port, the A2 Terminal is located about 110 kilometers east of Bangkok, and is seen as a gateway of transportation shipment in Indochina and for transshipment to and from Thailand. It is the only multi-purpose terminal in Laem Chabang. cdll The new project is ICTSI's first venture in Southeast Asia outside of Manila. ICTSI currently operates two ports in Argentina, two in Mexico, one in Pakistan and another in Saudi Arabia.