Mercator has announced that the company's Singapore-based step down subsidiary, Mercator Lines (Singapore), (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 Apr. 30, 2013.
The consideration for the early termination of the charter of the vessel, interalia is issues of 45,140,124 new ordinary shares in the capital MLS subject to compliance of applicable laws, regulations or listing rules of the Singapore Exchange Securities Trading.
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 price a share shall not be less that Singapore Dollar 0.1058.
Shares of the company declined Rs 0.45, or 2.96%, to settle at Rs 14.75. The total volume of shares traded was 194,079 at the BSE (Thursday).