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Updates

| Updated on March 22, 2013 Published on March 22, 2013

Mercator Ltd has informed BSE that:

"Our Singapore based step down subsidiary, Mercator Lines (Singapore) Ltd., (MLS) has entered into early termination and settlement agreement with the owner of vessel M.V. Maria Laura Prem (Owner) pursuant to which MLS and the owner have agreed to the early termination of the existing charter on or before April 30, 2013.

The consideration for the early termination of the charter of the vessel, interalia, is issue of 45,140,124 new ordinary shares (Compensation Shares) in the capital of MLS subject to compliance of applicable laws, regulations or listing rules of the Singapore Exchange Securities Trading Limited (the “SGX-ST”). The Compensation Shares will be issued at a price equivalent to the closing price for the ordinary shares on the SGX-ST on the market day, preceding the date on which the Compensation Shares are issued to the Owners, provided that the issue price per share shall not be less than S$0.1058. The Compensation Shares will rank pari passu in all respects with the existing Shares.

Our Singapore based Wholly Owned Subsidiary, Mercator International Pte Ltd (MIPL)., which is the parent Company of MLS, will grant a put option to the Owner which will entitle them to require MIPL to purchase up to 45,140,124 of the Compensation Shares at the price equivalent to 50 per cent of the closing price for the Shares on the SGX-ST on the market day preceding the date on which the Compensation Shares are transferred to the Owner.

The Put Option may only be exercised by giving of atleast 30 days’ notice to Mercator International on or within 90 days after the earlier of (i) the fourth anniversary of the date on which the Compensation Shares are transferred to the Owner; and (ii) the date on which an order for the winding up of MLS on grounds of insolvency is granted by Singapore courts.

On issuance of the Compensation shares, MIPL’s shareholding in MLS will decline from 68.44% to 66.17%. In the case of exercise of the Put Option, MIPL’s shareholding would increase to 74.20%."

Source : BSE - >www.bseindia.com

Published on March 22, 2013
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