10 August 2010
Disclosure Connected Transaction: Short - Term Lease
(Translation)
10 August 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. 6/2553 dated 10 August 2010,
has approved a subsidiary to renew the Office Lease Agreement of
Maleenont Tower. As the said renewal of the Lease Agreements is deemed
as a connected transaction of the Company: Short-Term Lease not
exceeding 3 years, therefore, the Company shall report and disclose the
related information as follows:
1. Date of Transaction
First Transaction: Floor 26-28;
From 11 November 2010 - 10 November 2013
Second Transaction: Floor 21 and 25;
From 19 January 2011 - 18 January 2014
2. Parties: Transaction between Subsidiary and Connected Person
Lessee - BEC - Tero Entertainment Public Company Limited [BEC-Tero]
Lessor - Millionaire Property Fund (the "Property Fund")
3. General Details of Transaction
BEC-Tero is intended to renew the Lease Agreement of Maleenont Tower
with the Property Fund having details of the said renewal as follows:
- Details of Building: the building located at No. 3199 Rama IV Road,
Klongton Subdistric, Klongtoey District, Bangkok
- Size of Lease Premises: Total area of 5,526.5 Sq.m.
- Term: 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 1,326,360.-. The total rent for the
whole 3-year lease term is at the amount of Baht 47,748,960.- (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
- Relationship: BEC - Tero Entertainment Public Company Limited
[BEC-Tero] - our subsidiary which BEC holds 60% of the paid up capital
and the substantial portion of the rest is held by non - connected parties.
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