Board Approves Setting up a Trading Company in China

13rd February 2009

To : Managing Director The Stock Exchange of Thailand

Subject : To report the resolutions of the Board of Directors' Meeting No. 2/2009

The Meeting of the Board of Directors of Polyplex (Thailand) Public Company Limited (the Company) No.2/2009 held at 10.30 am on 13 February 2009 has resolved as follows:

1. That the minutes of the Board of Directors' Meeting No. 1/2009, dated 27 January 2009 be certified.

2. That the investment to set up a trading company in China by Polyplex (Singapore) Pte Ltd. (PSPL) - a wholly-owned subsidiary of the Company be approved. The total investment amount would be USD 0.98 million which would be made either by PSPL from its cash flows or by the Company. In case the investment is to be made by the Company, then the Company will acquire up to 3,500 preference shares of PSPL at an issue price of USD 280 per share. The equivalent value of the total investment at the exchange rate of Baht 35/ USD comes to Baht 34.3 million.

The purpose of the investment is to set up a trading company which would sell the products of Polyplex group in the Chinese market and help the Company to create a significant presence in China, which is one of the largest markets of Thin PET film in the world. The trading company will also help the Company in establishing itself as a local supplier in China.

The details of the investment like the name of the company, structure/composition of the Board of Directors and other statutory positions,etc are being worked out in consultation with professional advisors and the Company would release the details once the above issues are finalized.

After having calculated, by using the highest calculation base (i.e. the total value of consideration paid divided by the value of total assets of the Company), the size of transaction is lower than 15%. After having calculated, by considering the combined investment in this project as well as the investment of USD 7 million in the subsidiary company, Polyplex (Americas) Inc, approved by the Board on 24th October'08, and increase in the capital cost of the Cast Polypropylene (CPP) Project,approved by the Board on 27th January'09, the size of the transaction is still lower than 15%.

 

Yours faithfully,
Polyplex (Thailand) Public Company Limited

 

(Mr.Rohit Kumar Vashistha)
Director

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