| Mon 22 Jun 2009, 14:16 | | TRE/MOB - Trencor/Mobile - Trencor`s Textainer Further Expands Managed |
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MOB TRE
MOB TRE
TRE/MOB - Trencor/Mobile - Trencor`s Textainer Further Expands Managed
Container Fleet: Obtains Rights To Manage Capital Intermodal And Xines Fleets
TRENCOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration No 1955/002869/06)
Share Code: TRE
ISIN: ZAE000007506
("Trencor")
MOBILE INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration No 1968/014997/06)
Share Code: MOB
ISIN: ZAE000091435
("Mobile")
TRENCOR`S TEXTAINER FURTHER EXPANDS MANAGED CONTAINER FLEET: OBTAINS RIGHTS TO
MANAGE CAPITAL INTERMODAL AND XINES FLEETS
We draw attention to the following news release issued by Textainer Group
Holdings Limited, in which Trencor has a 62,3% interest:
"Hamilton, Bermuda, June 22, 2009 (Business Wire) - Textainer Group Holdings
Limited (NYSE:TGH) ("Textainer" or the "Company"), the world`s largest lessor
of intermodal containers based on fleet size, today reported that it entered
into an agreement with Capital Intermodal Limited, Capital Intermodal GmbH,
Capital Intermodal Inc., Capital Intermodal Assets Limited (jointly, "Capital
Intermodal"), and Xines Limited ("Xines", and together with Capital
Intermodal, "Capital") to purchase the rights to manage Capital`s 156,000
twenty-foot equivalent unit ("TEU") container fleet effective as of July 1,
2009.
With this agreement and including the acquisition of management rights for
Amficon`s container fleet, which was announced on April 16, 2009, Textainer
has added 300,000 TEU to its fleet, representing an increase of 15%. As a
result of these purchases, Textainer will operate a fleet of approximately 2.3
million TEU.
John Maccarone, President and CEO of Textainer, commented, "We are proud to
have entered into our second transaction with Ian Karan, a legend in container
leasing and trading and noted philanthropist. With this agreement, we have
once again drawn upon our considerable financial flexibility to further
enhance the Company`s leading position and cost effectively increase its
earnings power in a low-risk manner. We expect this transaction to be
immediately accretive to earnings and further reduce our overhead cost per
container. In addition, the fleet has an average age of only two years and, as
a result, we anticipate it will generate attractive management fees until at
least 2019. The fleet also includes refrigerated containers, an area of
emphasis for Textainer, as well as several other types of special containers
which complement our strategic growth initiatives."
Mr. Maccarone continued, "We are pleased to continue to take advantage of this
challenging economic environment and expand the Company in a disciplined
manner that meets our strict growth and return criteria. In accomplishing this
important objective, we have maintained our significant financial strength,
which includes over $350 million in liquidity. Accordingly, we remain well
positioned to continue to seek additional favorable opportunities in
acquisitions, purchase-leasebacks and long-term lease transactions, which we
believe may arise in the second half of 2009."
Ian K. Karan, Chairman of Capital Intermodal, said, "Two years ago, amid stiff
competition, I chose Textainer to manage the 510,000 TEU Capital Lease Limited
fleet. Textainer`s performance even in this challenging operating environment
has been exemplary, and I remain pleased with my decision. The fleet of mostly
specialized units operating under Capital Intermodal has expanded rapidly
since its inception in 2005 both organically and through the takeover of the
Management of the Xines Ltd. fleet. In addition to standard dry freight
containers, the fleet consists of refrigerated, tank and bulk containers and
also includes open tops, flat racks, bitumen and other highly specialized
equipment. Capital Intermodal`s customer base extends over 100 operators and
shipping lines and the investment in the owned and managed fleet totals over
$500 million. In today`s difficult economic environment, it seemed obvious to
me that a company of the scale and depth of Textainer should guide Capital
Intermodal going forward.
"Inevitably, Textainer was the best choice to manage a large part of the
fleet. Capital Intermodal will continue to be an investor in containers and
will operate certain types of equipment such as tank containers for its own
account."
Important Cautionary Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
U.S. securities laws. Forward-looking statements include statements that are
not statements of historical facts, and include, without limitation,
statements regarding (i) Textainer`s expectation that the acquisition of
management rights to Capital`s container fleet will cost effectively increase
its earnings power in a low-risk manner; (ii) Textainer`s expectation that the
Capital acquisition will be immediately accretive to earnings and further
reduce its overhead cost per container; (iii) Textainer`s expectation that the
Capital acquisition will generate attractive management fees until at least
2019 and (iv) Textainer`s belief that additional favorable opportunities in
acquisitions, purchase-leasebacks and long-term lease transactions may arise
in the second half of 2009. These risks and uncertainties include, without
limitation, the possibility that the economies of scale, cost savings, and any
other synergies expected from the acquisition may not be fully realized or may
take longer to realize than expected; the risk that the acquisition could
present unforeseen integration obstacles or costs; the continued downturn and
other adverse developments in the global economy; the Company`s continued
ability to finance any future transactions, including the Company`s continued
borrowing availability under its debt facilities; and other risks and
uncertainties, including those set forth in the Company`s filings with the
Securities and Exchange Commission. For a discussion of some of these risks
and uncertainties, see Item 3, "Key Information--Risk Factors" and Item 5,
"Operating and Financial Review and Prospects" in the Company`s Annual Report
on Form 20-F for the fiscal year ended December 31, 2008 filed with the
Securities and Exchange Commission on March 16, 2009 and the risks and
uncertainties described in the Company`s Quarterly Report on Form 6-K for the
three months ended March 31, 2009 filed with the Securities and Exchange
Commission on May 12, 2009.
The Company`s views, estimates, plans and outlook as described in this press
release may change subsequent to the release of this press release. The
Company is under no obligation to modify or update any or all of the
statements it has made herein despite any subsequent changes the Company may
make in its views, estimates, plans or outlook for the future.
About Textainer Group Holdings Limited
Textainer has operated since 1979 and is the world`s largest lessor of
intermodal containers based on fleet size. We currently have a total of more
than 1.3 million containers, representing 2.15 million TEU, in our owned and
managed fleet. We lease containers to more than 400 shipping lines and other
lessees. We principally lease dry freight containers, which are by far the
most common of the three principal types of intermodal containers, although we
also lease refrigerated and other specialized containers. We have been one of
the largest purchasers of new containers among container lessors over the last
10 years. We believe we are one of the largest sellers of used containers,
having sold more than 170,000 containers during the last two years. We provide
our services worldwide via a network of 14 regional and area offices and over
330 independent depots in more than 150 locations.
SOURCE: Textainer Group Holdings Limited
Textainer Group Holdings Limited
Mr. Tom Gallo, 415-658-8227
Investor Relations Director
ir@textainer.com
or
Capital Intermodal GmbH
Mrs. Navina Karan, +49-40-41 47 79 38
n.karan@capital-intermodal.com"
Trencor Services (Pty) Ltd
Secretaries to Trencor and Mobile
22 June 2009
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
www.trencor.net
www.mobile-industries.net
Date: 22/06/2009 14:16:02 Produced by the JSE SENS Department.
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