001/011/2007
February 23, 2007
President
The Stock Exchange of Thailand
62 Ratchadapisek Road,
Klongtoei, Bangkok 10110
Dear Sir,
Re : Announcement of Disposition of Investment Projects and Capital Increase
Amata Corporation Public Company Limited (AMATA) wishes to inform the resolution of the Board of Directors at the meeting No. 1/2007 held on February 23, 2007. The meeting approved :
The Disposition of 2 Investment Projects
1) The board approved the ratification of the disposition of Amata Dung Quat Co., Ltd. in Vietnam which Amata Corporation PCL holds 70.59%. Amata Dung Quat was established on December 6, 2001 in order to develop petro-chemical complex in Vietnam called Dung Quat Industrial Zone. 1st Phase of the project covers the area of 50 ha from the total project area of 600 ha. Due to slow development of Dung Quat Industrial Zone, the Board of Directors of AMATAhas resolved to dispose Amata Dung Quat Project - in Vietnam. For investment in Vietnam, AMATA will focus only an investment in Amata City (Bien Hao) an industrial estate project in Dong Nai Province, where a new international airport of Ho Chi Minh City will be located. The details of the project are as follows:-
| 1.1 The date on which transaction occurred: | June 2006 |
| 1.2.The details of the assets disposed of | |
| - The company name : | Amata Dung Quat Co.,Ltd. |
| - The nature of its business | Develop a petro-chemical complex in Vietnam called Dung Quat Industrial Zone |
| - Registered capital: | US$ 1,275,000 |
| 1.3 Percentage of shareholding in Amata Dung Quat Co.,Ltd | |
| - Amata Corporation PLC : | 70.59% |
| - Quang Ngai General Construction Development: | 29.41% |
| 1.4 Reason for the disposition of the assets : | Due to the delay of the construction of the refinery project which is essential to attract investors to lease the land from this Project. AMATA put an investment of 17,964,605.75 baht and was refunded the amount of 9,609,768.61 baht. So, the disposition will cause AMATA the loss of pre-operating expenses of 8,354,837.14 baht. |
2) Cancellation of establishing Vibharam (Amata Nakorn) Hospital Limited, which is an associated company AMATA holds 21.25% shares of its registered capital of 100 million baht under the resolution of the Board of Directors Meeting on November 10, 2006. Vibharam (Amata Nakorn) Hospital Limited has not yet registered its company establishment with the Ministry of Commerce.
Calculation of the Size of Investment of the Two Disposed Transactions
Type of the transaction Considered to be an acquisition or disposition of assets of the listed company with the size smaller than 15% Size of the transaction: 0.33% Criteria of evaluating the size: Total value of consideration paid or received Capital Increase in an Associated Company
The Board approved capital increase in an associated company Amata Health Service Co., Ltd Amata Health Service will increase its registered capital from 5,000,000 baht to 100,000,000.- baht. AMATA will put the amount of 20,000,000 baht (from the total increased capital of 95,000,000 baht) in order to maintain the shareholding ratio of 21.25% in Vibharam (Amata Nakorn) Hospital Limited under the resolution of Board of Directors Meeting on November 10th, 2006. There will be no other amendments. After capital increase, Amata Health Service will change its name o Vibharam (Amata Nakorn) Hospital Limited.The reason for the said change is to eliminate the same duplicated business activities of AMATA group of companies. Vibharam (Amata Nakorn) Hospital Limited and Amata Health Service Co., Ltd. provide the hospital and health care services
Calculation of the size of Capital Increase
Type of the transaction Considered to be an acquisition or disposition of assets of the listed company with the size smaller than 15% Size of the transaction: 0.22% Criteria of evaluating the size: the total value of consideration paid or received For your information.
Yours sincerely,
AMATA CORPORATION PUBLIC COMPANY LIMITED
Pol. Gen. Chavalit Yodmani
CHAIRMAN