A/S Dampskibsselskabet TORM - Company Announcement
January 24 2008 - 3:05AM
PR Newswire (US)
Acquisition of 50% of FR8 COPENHAGEN, January 24
/PRNewswire-FirstCall/ -- A/S Dampskibsselskabet TORM ("TORM")
announces that it has acquired a 50% equity stake in the shipping
company FR8 Holdings Pte. Ltd. ("FR8") from FR8 Limited, a
subsidiary of the international oil trader Projector. The FR8 Group
has offices in Singapore, London and Veracruz in Mexico and employs
about 30 staff worldwide. Projector will continue to own its equity
interest in FR8. The purchase price for the 50% equity stake in FR8
amounts to USD 125 million which reflects the current value of
similar shipping companies. In accordance with TORM's long-term
strategy, "Greater Earning Power", the acquisition of FR8 will
provide TORM's fleet with access to oil cargoes from Projector and
FR8. In addition, the acquisition will enhance TORM's insight into
the demand parameters influencing the product tanker market. The
FR8 Group controls 25 vessels including 3 LR2 new buildings for
delivery in 2008. The FR8 Group owns 6 modern product tankers,
comprising 4 MR and 2 LR1 product tankers. In addition, the FR8
Group has long-term charters on 3 LR2, 4 LR1 and 11 MR product
tankers, with purchase options on 3 of these vessels. The FR8 Group
also commercially manages 1 LR2 vessel. The agreement is subject to
merger control approval and execution. For further information on
FR8, please refer to http://www.fr8.com/. Specification of the
expectations for the 2007 result TORM's expectations for the result
before tax, excluding restructuring costs in connection with the
acquisition of OMI, for 2007 are specified to USD 810-820 million.
The restructuring costs are ex-pected to amount to approximately
USD 15 million. About TORM TORM is one of the world's leading
carriers of refined oil products as well as being a significant
participant in the dry bulk market. The Company operates a combined
fleet of more than 130 modern vessels, principally through a
pooling cooperation with other respected shipping companies who
share TORM's commitment to safety, environmental responsibility and
customer service. TORM was founded in 1889. The Company conducts
business worldwide and is headquartered in Copenhagen, Denmark.
TORM's shares are listed on the Copenhagen Stock Exchange (ticker
TORM) as well as on the NASDAQ (ticker TRMD). For further
information, please visit http://www.torm.com/. Safe Harbor Forward
looking statements Matters discussed in this release may constitute
forward-looking statements. Forward-looking statements reflect our
current views with respect to future events and financial
performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The forward-looking statements in
this release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, Management's examination of historical operating
trends, data contained in our records and other data available from
third parties. Although TORM believes that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, TORM
cannot assure you that it will achieve or accomplish these
expectations, beliefs or projections. Important factors that, in
our view, could cause actual results to differ materially from
those discussed in the forward looking statements include the
strength of world economies and currencies, changes in charter hire
rates and vessel values, changes in demand for "tonne miles" of oil
carried by oil tankers, the effect of changes in OPEC's petroleum
production levels and worldwide oil consumption and storage,
changes in demand that may affect attitudes of time charterers to
scheduled and unscheduled dry-docking, changes in TORM's operating
expenses, including bunker prices, dry-docking and insurance costs,
changes in governmental rules and regulations including
requirements for double hull tankers or actions taken by regulatory
authorities, potential liability from pending or future litigation,
domestic and international political conditions, potential
disruption of shipping routes due to accidents and political events
or acts by terrorists. Risks and uncertainties are further
described in reports filed by TORM with the US Securities and
Exchange Commission, including the TORM Annual Report on Form 20-F
and its reports on Form 6-K. Forward looking statements are based
on management's current evaluation, and TORM is only under
obligation to update and change the listed expectations to the
extent required by law. Contact: A/S Dampskibsselskabet TORM,
Telephone +45-39-17-92-00, Tuborg Havnevej 18, Klaus Kjaerulff,
CEO, Mikael Skov, COO K-2900, Hellerup, Denmark, DATASOURCE: A/S
Dampskibsselskabet TORM CONTACT: Contact: A/S Dampskibsselskabet
TORM, Telephone +45-39-17-92-00, Tuborg Havnevej 18, Klaus
Kjaerulff, CEO DK-2900 Hellerup Denmark Mikael Skov, COO
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