ANNOUNCEMENT NO. 17 - 2007
6 July 2007
Distribution of extraordinary dividend in lieu of share buy-back program
In release No 15 of 29 June 2007, TORM announced that the contemplated share
buy-back program was postponed until the third quarter due to technical
reasons.
The Board of Directors of TORM has today decided not to complete the
contemplated share buy-back program. The rationale behind the decision is that
the technical problems in con-nection with the share buy-back, in particular in
relation to US shareholders and ADR hold-ers, have proven too big, and the
transaction structure would impose substantial restrictions on TORM's
operational and strategic freedom of action in the coming months.
The DKK 2 billion that since the sale of the shares in Dampskibsselskabet
“NORDEN” and the purchase of the shares in OMI Corporation has been reserved
for the share buy-back program will the Board of Directors instead propose to
be distributed to the shareholders as an extraordinary dividend. Completion of
such a dividend distribution requires a sharehold-ers resolution and the Board
of Directors will therefore convene an extraordinary general meeting to be held
on Tuesday, 14 August 2007.
Assuming that the general meeting will grant this authority, the Board of
Directors intends to exercise this authority in connection with the release of
the semi-annual report on 31 Au-gust 2007, resulting in distribution of the DKK
2 billion as dividends in the beginning of Sep-tember 2007.
Contact Klaus Kjærulff, CEO, tel.: +45 39 17 92 00, mobile: +45 40 10 81 11.
N. E. Nielsen, Chairman, tel.: +45 72 27 00 00, mobile: +45 25 26 33 43.
About TORM
TORM is one of the World's leading carriers of refined oil products and has
significant activi-ties in the bulk market. The Company operates more than to
100 modern and secure ves-sels, most of them in pool co-operation with other
respected shipping companies, sharing TORM's commitment to safety,
environmental responsibility and customer service.
TORM was founded in 1889 and has constantly adapted itself and benefited from
the signifi-cant changes characterizing shipping. The Company conducts business
all over the World and is headquartered in Copenhagen, Denmark. TORM's shares
are listed in Copenhagen (ticker TORM) as well as on NASDAQ (ticker TRMD). For
more information, visit www.torm.com.
SAFE HARBOUR STATEMENT - FORWARD LOOKING STATEMENTS
Matters discussed in this release may constitute forward-looking statements.
Forward-looking statements reflect our current views with respect to future
events and financial performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than statements of historical
facts.
The forward-looking statements in this release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management's examination of historical operating
trends, data contained in our records and other data available from third
parties. Although TORM believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, TORM cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies and currencies, changes in charter hire rates and
vessel values, changes in demand for “tonne miles” of crude oil carried by oil
tankers, the effect of changes in OPEC's petroleum production levels and
worldwide oil consumption and storage, changes in demand that may affect
attitudes of time charterers to scheduled and unscheduled dry-docking, changes
in TORM's operating expenses, including bunker prices, dry-docking and
insurance costs, changes in governmental rules and regulations including
requirements for double hull tankers or actions taken by regulatory
authorities, potential liability from pending or fu
ture litigation, domestic and international political conditions, potential
disruption of shipping routes due to accidents and political events or acts by
terrorists.
Risks and uncertainties are further described in reports filed by TORM with the
US Securities and Exchange Commission, including the TORM Annual Report on Form
20-F and its reports on Form 6-K.
