Adisorn

Stark Corporation Public Company Limited (STARK) has revealed that the Board of Directors’ Meeting on September 30, 2019, has resolved STARK to acquire and accept the entire business transfer of Pinwheel 2 Co., Ltd., (Pinwheel 2), including 109,998 ordinary shares (with a par value of ฿1,000/share) in Adisorn Songkhla Co., Ltd. (Adisorn) with a total value of 1,550,000,000 baht. Adisorn specializes in manpower service. acting as a recruitment agency to offer clients quality personnel (recruiting services), and other relevant services; such as Visa and work permits, and payroll services, etc. The company also offers other services related to petroleum business, such as, vessel cleaning, offshore construction services, fabrication and maintenance services, and etc. Adisorn was certified with ISO 9001:2008 in terms of Quality Assurance from Bureau Veritas Thailand. The clients were confident in the quality of our services and the constant development of its personnel. Currently, Adisorn possesses more than 750 skillful-manpower who have been serving clients from the petroleum Industry. The company booked 89.2 million baht in 2016, 103.7 million baht in 2017 amd 129.5 million baht 2018. The Board of Directors has considered that the entire business transfer transaction is justifiable and beneficial to STARK and its shareholders because these transactions shall expand STARK ’s business into the manpower services business which leads to the creation of added-value for the company and shareholders. It is considered as risk diversification for business operation of STARK. Also, it is the opportunity to increase the revenue and rate of returns. It will strengthen the financial status of the Company and increase the cash flow derived from the long-term business operation of the company. However, Adisorn would be as if receiving cash from the repayment of a long-term loan to a related entity, amount of approximately 1,059 million baht based on Adisorn’ s 2018 financial statement. The repayment will be fully completed by 2Q20. Hence, if the receiving cash is settled with the total consideration of 1,550 million baht, the total consideration would be approximately 491 million baht or at P/E of approx. 3.8 times. The Board of Directors will propose this notion to the Extraordinary General Meeting of Shareholders No. 3/2019 November 29, 2019.