In reference to information and media reports regarding the investment by BCPG Public Company Limited (the “Company”) in an oil terminal project in Phetchaburi Province, the Company would like to clarify the details as follows:

The Company has invested in the aforementioned project through an acquisition structure. Under this arrangement, the seller was required to establish a new company, Asia Link Terminal Company Limited (“ALT”), and transfer only the assets, rights, and contracts related to the oil storage terminal and jetty business to ALT.

This transaction structure is designed to ensure that the acquisition involves only business-related assets and rights, while segregating any liabilities or potential risks arising from the seller’s past operations. This enables the valuation and post-investment operations to accurately reflect the true potential of the business, without being affected by historical obligations.

Following the completion of the asset transfer, BCPG Energy Logistics Company Limited, a subsidiary of the Company, acquired 100% of the shares in ALT, which holds solely the assets, rights, and contracts related to the business.

The investment valuation was conducted in accordance with general business investment principles, primarily based on the business’s ability to generate cash flow. This is derived from operational assets capable of providing services and long-term storage lease agreements that ensure recurring revenue in the future. Therefore, investment consideration is based on the projected cash flows and income-generating capability of the business, rather than the physical value of the assets. Currently, ALT generates approximately THB 900 million in annual revenue, reflecting its strong operational performance and consistent cash flow generation.

In accordance with accounting standards, the Company is required to complete a fair value assessment within 12 months from the transaction completion date. The Company finalized such fair value assessment in the second quarter of 2024. It should be noted that this accounting fair value assessment is not a factor in determining the investment value.

This investment forms part of the Company’s strategy to expand its energy infrastructure business to generate long-term stable income. The oil terminal business provides consistent cash flow and serves as a means to support revenue during the gradual expiration of Adder incentives for solar power projects in Thailand.

This transaction was conducted as a normal business transaction, with both buyer and seller acting independently and without any direct or indirect relationship. The Company remains committed to good corporate governance principles, emphasizing transparency, accountability, and strict compliance with applicable laws and regulations.