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Joint Venture Company Set Up With United Transportation Group Limited And PT JPT Satuan Harapan

BackJun 13, 2003

The Board of Directors of Samudera Shipping Line Ltd (the "Company") wishes to announce that the Company entered into a joint venture agreement with United Transportation Group Limited and PT JPT Satuan Harapan to set up a joint venture company in Indonesia, PT Jardine Tangguh Transport Services (the "JV Company"). The incorporation of the JV Company was recently approved by the Ministry of Justice and Human Rights in Indonesia on 21 May 2003 and the operations of the JV Company commenced with effect from 1 June 2003.

The JV Company has an authorised share capital of US$1,000,000.00 consisting of 1,000,000 ordinary shares of par value US$1.00 each, of which 400,000 ordinary shares have already been issued at par and fully paid up by the parties in accordance with their shareholding in the JV Company. The shareholding in the JV Company is as follows :-

(a)
United Transportation Group Limited ("UTGL")
-
50%
(b)
The Company
-
40%
(c)
PT JPT Satuan Harapan ("PT JSH")
-
10%


It is also a term of the joint venture agreement that the joint venture parties are to provide a shareholders' loan with interest to the JV Company, the principal amount totalling US$400,000.00 in accordance with their respective shareholdings in the JV Company upon receipt of the approval by the Ministry of Justice and Human Rights in Indonesia in relation to the incorporation of the JV Company.

UTGL is a company incorporated in Mauritius and is a wholly-owned subsidiary of Jardine Pacific Holdings Limited. Its ultimate holding company is Jardine Matheson Holdings Limited. PT JSH is a company incorporated in Indonesia of which 99.9% of its issued shares are owned by PT Samudera Indonesia Tangguh (deemed as the controlling shareholder of the Company pursuant to the provisions of the SGX-ST Listing Manual). Mr Randy Effendi is the President Commissioner of PT JSH and Mr Hamdi Adnan is one of the directors in PT JSH, both of whom are also directors in the Company. PT JSH is one of the parties to the joint venture as it is a requirement under Indonesian law for an Indonesian local company to be one of the shareholders before the JV Company could be granted a forwarding agent licence.

The subscription of the 160,000 ordinary shares in the JV Company, being 40% of the issued shares of the JV Company has been funded by internal sources.

The principal activity of the JV Company is to carry on the business as an international freight forwarder based in Indonesia and to represent and/ or act as agent for other freight forwarding or shipping companies.

The rationale for the joint venture is to enable the Company to partner with the Jardines group and expand its existing business as well as explore new business opportunities whenever it arises. The Jardines group of companies is involved in the business of supermarkets, consumer marketing, engineering and construction, insurance broking, motor trading, property, hotels as well as in the aviation and shipping industry. On 7 January 2003, the Company had announced a joint venture agreement with Jardine Matheson (Malaysia) Sdn. Bhd. for the purpose of carrying on the business as general shipping agents in Malaysia.

This joint venture is not expected to have any material effect on the earnings per share and/ or the net tangible assets per share of the Company for the financial year ending 31 December 2003.

Save as is disclosed in this Announcement, none of the directors or substantial shareholders of the Company has any direct or indirect interest in this joint venture.

BY ORDER OF THE BOARD