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RATCH Group & Saha Group join forces for power business expansion, leading to joint investment in 51% shares of Sahacogen for further growth

Nonthaburi, 28 October 2021: RATCH Group Public Company Limited and Saha Group today announced a strategic alliance for joint investment and development of power projects both domestically and internationally. Its aim is to drive Sahacogen’s growth, particularly in renewable power business, energy and other related businesses. As such, RATCH Group will purchase the existing ordinary shares and the newly issued ordinary shares of Sahacogen (Chonburi) Public Company Limited (Sahacogen) from Saha Group accounting at 51% of its total issued and subscribed shares, valued at 3.413 billion baht (or 5.75 baht per share). The share purchase agreement and the share subscription agreement were already entered today. The entire transaction is expected to complete in December 2021.

Sahacogen (Chonburi) Public Company Limited produces 214-MW electricity fired by natural gas and 96 tons-per-hour steam. 90-MW electricity is sold to Electricity Generating Authority of Thailand (EGAT) and the remaining electricity including steam is sold to industrial users in the Sahapat Group - Sriracha Industrial Park. In addition, Sahacogen has also invested in two biomass power plants; a 9.6-MW power plant located in Lamphun province under operation of Sahacogen Green Co., Ltd. (a wholly-owned subsidiary of Sahagogen), and a 7.5-MW power plant located in Kamphaeng Phet province under operation of Sahagreen Forest Co., Ltd. (75% stake owned). The former distributes 8-MW electricity to Provincial Electricity Authority (PEA) and steam to industrial customers, while the latter sells 7-MW electricity to PEA. It also has a joint venture in Solar Impact Co., Ltd., owned 21% stake to operate solar rooftop installation with 53-MW capacity target and distribute solar electricity directly to business and industrial customers .

Ms. Choosri Kietkajornkul, Chief Executive Officer of RATCH Group Public Company Limited, stated that the success of the joint venture reflects the company’s endeavor to maintain and extend constant growth on power generation business in Thailand by focusing investment on operating SPP cogeneration power plants having promised customers with power and steam purchase contracts. At present, Sahacogen power plant distributes electricity to more than 70 industrial customers including Saha Group’s manufacturing plants. Furthermore, power demand from industrial customers is forecasted to grow due to increase of the Industrial Park’s customers, while future opportunity and potential of business development to support distribution system transition to smart grids and/or microgrids foreseen as well.

“RATCH Group is grateful for this success. Sahacogen Power Plant is our seventh cogeneration project in Thailand. More importantly, it creates strategic partnership between RATCH and Saha Group, the leader in consumer product business in Thailand, which aligns to the company’s sustainable alliance strategy and is regarded as significant mean for achieving our goal to be a leading value-oriented energy and infrastructure company in Asia Pacific. Both partners similarly strive for common goal and collectively integrate all aspects of strength and expertise enabling Sahacogen (Chonburi) Public Company Limited to expand its business in power and energy-related sectors. We are greatly appreciated that Saha Group places confidence in RATCH, consequently leading to today success and future collaboration,” Ms. Choosri said.

Mr.Vichai Kulsomphop, President and CEO of Saha Pathana Inter-Holding Public Company Limited said, “Sahacogen's power plant in Saha Group Industrial Park, Sriracha is one of the First Series of Cogeneration Combined Cycle Small Power Plants in Thailand. To have an alliance partner like RATCH Group, in which the major shareholder is the Electricity Generating Authority of Thailand, in this business expansion is a great pleasure and, in the long term, will contribute to a creation of energy stability for all factories in Saha Group Industrial Park, Sriracha as well as new investment opportunities with RATCH Group, going forward."

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