Padaeng Industry Plc. (PDI) reported that its board of executive directors has resolved at the meeting no. 1/1997 on January 10, 1997 to let PDI enter a contract to guarantee a loan of Padaeng Pungsan Metals Co., Ltd. (PPM), its subsidiary, with Metropolis Trust and Securities Plc. PDI said this transaction is a connected one according to the announcement no. 9. (2) (Gor) of the Stock Exchange of Thailand (SET) concerning criteria, methods and disclosures of listed company's connected transaction. The company therefore disclosed the information of this transaction as below: 1. Date of Transaction & Related Contract Partners: The board resolved at the meeting no. 1/1997, held on January 10, 1997, to have PDI act as a guarantor for a short-term loan PPM secured from Metropolis Trust & Securities Plc. The purpose of this loan is to raise the working capital of the subsidiary. 2. Nature of Transaction, Terms, and Interest Rate: Loan Amount: Bt100 million Borrower: PPM Lender: Metropolis Trust & Securities Plc. Loan Guarantor: PDI Instrument: Bill of Exchange Reayment Period: 1 year 3. Nature of Business and PDI's Shareholding: PPM is a producer of brass and copper sheets, plain coins, and bullet casing. PDI has a 61.98%- shareholding in this company. 4. Connected Directors, Executives, and Persons: As at December 31, 1996 Name Position in PDI Position in PPM 1) Mr. Thirachai Riensabdi Managing Director Director / Acting Managing Director 2) Mr. Sathien Nilthawat Deputy Managing Director Director / Executive (Operation) Director 3) Mr. Tripol Riebroicharoen Deputy Managing Director Deputy Managing (Administration, Director Commerce, and Mining) 5. Nature and Coverage of Gain/Loss of Connected Persons: None 6. Purpose of Guarantee: To give a financial support to PPM as PDI is a major shareholder having a control and management authority in this subsidiary. The above transaction falls as a transaction of SET's announcement no. 9 (2) (Gor) concerning the criteria, method, and disclosures of listed company's connected transaction. Translated by The Nation