Additional Information on Connected Transaction
Ref: 40/530805
Date: August 5, 2010
Subject: Additional Information on Connected Transaction
Attention: Director and Manager The Stock Exchange of Thailand
With reference to the Company's earlier notification of its agreement entered into contractual agreement with a connected company, on its capacity as a contractor, in charge of structural and architectural works as part of a new cold storage construction project (Building 1) as stated in the Letter Ref.No. 39/530804, dated August 4, 2010. The Company hereby provides additional information;
1. In order to select the most qualified contractor to realize the new cold storage construction project (Building 1), the selection procedures fairly employed to 4 bidders are on the basis of certain factors, ranging from price competitiveness, capability to meet demanding time requirement and to compliance level with the Company's rules. After comprehensive comparison, Geminai & Associate Co., Ltd. won top scores through its price quotation most suitable for the nature of the works in addition to its most promising potentiality to meet highly demanding timeframe and urgency.
2. Opinion of the Company's Board of Directors, where no directors who have interest and/or directors who are connected person(s) attended the above mentioned agenda, has considered and concluded that the entry into such transaction is a reasonable transaction and will maximize the benefit for the Company, comparing with the entry into such transaction with independent third person(s). Namely,Geminai & Associate Co., Ltd., as an active service provider in its industry, is well equipped with proven professional experience and expertise necessary for efficient implementation of the said structural and architectural works, coupled with its capability to perform coordination roles with other contractors simultaneously engaged in the project, within highly demanding timeframe and urgency.
3. The transaction value of Bt252,809,350.47 earlier notified has included 7% value-added tax incurred. Excluding the value-added tax, the transaction value would stand at Bt236,270,421.
Please be informed accordingly.
Respectfully yours,
Thai Union Frozen Products PCL.Mr. Kraisorn Chansiri
Mr. Chuan Tangchansiri