09:24 TITAN PETROCHEM<01192> - Announcement (2) The consideration has been agreed after arm's length negotiations by reference to the prevailing market value of the vessel on its existing state (being approximately US$56,000,000 (approximately HK$436,800,000)) as valued by Ritchie & Bisset (Far East) Pte Ltd. (a professional marine surveyor and consultant and an Independent Third Party). The consideration will be funded from internal resources of the Group. Acquisition of ``Titan Neptune'' The consideration payable by Titan Neptune pursuant to the Titan Neptune MOA is US$49,000,000 in cash (approximately HK$382,200,000), representing a discount of 2% to the prevailing market value referred to below, and will be payable by Titan Neptune on delivery of the vessel. The consideration has been agreed after arm's length negotiations by reference to the prevailing market value of the vessel on its existing state (being approximately US$50,000,000 (approximately HK$390,000,000)) as valued by Ritchie & Bisset (Far East) Pte Ltd. (a professional marine surveyor and consultant and an Independent Third Party). The consideration will be funded from internal resources of the Group. Delivery Delivery of ``World Prelude'' is expected to take place between 1st May, 2005 to 30th June, 2005 at one safe port Arabian Gulf-Japan-Red Sea-Republic of South Africa range at Clover Company's option. The cancellation date for delivery of the vessel is 30th June, 2005. Delivery of ``Titan Neptune'' is expected to take place on 24th March, 2005 in port or at sea at a mutually acceptable location worldwide at Averrida's option. The cancellation date for delivery of the vessel is 31st March, 2005 at Titan Neptune's option. B. REASONS FOR THE ACQUISITIONS AND BENEFITS TO THE COMPANY The Group engages in the procurement of oil products, oil transportation, storage and distribution. In view of the continued growth of its oil transportation business, the Company intends to continue to seek to enhance its competitiveness by upgrading and expanding its operating fleet and by acquiring vessels (through purchase and/or chartering arrangements), when suitable opportunities arise. The transactions under the MOAs thus enable the Group to bolster its owned oil transportation operating fleet. The Directors are of the view that the terms of the MOAs are fair and reasonable and in the interests of the Shareholders as a whole. C. GENERAL Each of the acquisitions constitutes a discloseable transaction of the Company under Rule 14.06(2) of the Listing Rules. A circular containing, amongst other things, further details of the acquisitions will be despatched to the Shareholders as soon as practicable. As at the date of this announcement, the executive directors of the Company are Mr. Tsoi Tin Chun, Mr. Barry Cheung Chun Yuen, JP, Mr. Patrick Wong Siu Hung, Mr. Dave Lee Yeow Long, the non-executive director of the Company is Mr. Cheong Soo Kiong and the independent non-executive directors of the Company are Mr. Liu Hongru, Miss Maria Tam Wai Chu, JP and Mr. Wong Kong Hon, JP. D. DEFINITIONS In this announcement, unless the context requires otherwise, the following terms have the meanings as set out below:- ``Averrida'' Averrida Corporate Ltd., a company incorporated in the British Virgin Islands; ``Banking Days'' days on which commercial banks are generally open for business in New York, Singapore and Hong Kong; ``Board'' the board of Directors of the Company; ``Clover Company'' Clover Company S. A., a company incorporated in Panama; ``Company'' Titan Petrochemicals Group Limited, a company incorporated in Bermuda and the shares of which are listed on the Stock Exchange;