03 March 2010
Disclosure of Information regarding Connected Transaction
(Translation)
3 March 2010
Re: Disclosure of Information regarding Connected Transaction:
Short-Term Lease not exceeding 3 years
To President
The Stock Exchange of Thailand
The Board of Director's Meeting of BEC World Public Company Limited (the
"Company") in the Meeting No. 2/2553 held on 3 March 2010, has approved the
Company and its subsidiaries to renew the Office Lease Agreement at the
Maleenont Tower. As the said renewal of the Lease Agreements is deemed as the
connected transaction of the Company, therefore, the Company shall report and
disclose the related information as follows:
1. Date of Transaction: From 9 April 2010 - 8 April 2013
2. Parties: Transaction between Listed Company and
Connected Person
Lessee: BEC World Public Company Limited and
following subsidiaries:
- Bangkok Entertainment Co., Ltd.
- BEC Asset Co., Ltd.
- BECi Corporation Limited
- BEC IT Solution Co., Ltd.
- BEC Television Co., Ltd.
- Rungsirojvanit Co., Ltd.
- TVB 3 Network Co., Ltd.
- BEC Broadcasting Center Co., Ltd.
Lessor: Millionaire Property Fund
(the "Property Fund")
3. General Details of Transaction:
The Company and its subsidiaries are intended to renew the Lease Agreement
of Maleenont Tower with the Property Fund having details of the said renewal
as follows:
- Details of Building: 2 Office Buildings, 36 Floors and 12 Floors
respectively, located at No. 3199 and 3199/1,
Rama IV Road, Klongton Subdistric, Klongtoey
District, Bangkok 10110
- Size of Lease Premises: 36-Floor Building -Total area of 14,136.66 Sq.m.
12-Floor Building -Total area of 11,802.88 Sq.m.
Total area of 25,939.54 Sq.m.
- Term: 3 years and having the option to renew
for another 3 years
- Rental Rate: Baht 240 per Sq.m. per month
- Other Conditions: As indicated in the previous Lease Agreement
4. Total Value of the Transaction:
Monthly rent is at the amount of Baht 6,225,489.60. The total rent for the
whole 3-year lease term is at the amount of Baht 224,117,625.60 (exclusive
of common service fee, expenses for water supply and electricity, household
and land tax,other related taxes and expenses, etc.)
5. Details of Connected Person:
-Name of the Connected Person: Millionaire Property Fund
["the Property Fund"]
- Relationship: Maleenont group are managements and the
majority shareholders of the Company and
also the shareholders of Maleenont Tower
Co.,Ltd. Maleenont Tower Co., Ltd. is the
investment unit holder of the Property Fund
holding more than 10% of the total issued
investment units. the Property Fund has
appointed Maleenont Tower Co., Ltd.to
manage the property under the Property
Management Agreement.
6. Directors who have Interests:
The directors who have Interests were not attended the Meeting and did not
have the right to vote in the Agenda for approval of this connected
transaction.
7. Opinion of the Board of Director concerning the Transaction:
The Board of Directors considered and opined that the entering into the
connected transaction is based on the reasonable ground and supportive
reason.Though, the Property Fund proposed the rental rate of the lease of
Maleenont Tower as the same rate of the previous contract, but the said
rental rate is at the same level with the market rates of the comparable
buildings within the adjacent area. Also, if compared to the rental rate
as proposed by the Property Fund to other lessees in the Building, this
rental rate is better compared to those proposed to other lessees.
Therefore, the Board of Directors has approved the Company to enter into
this transaction as this will be for the best interest of the Company.
In addition, there is no opinion of any other director or audit committee
which is different from the opinion of the Board of Directors as stated
above.
Please be informed accordingly.
Sincerely yours,
(Chatchai Thiamtong)
Vice President - Finance