Ratch Public : Opinion of the Independent Financial Advisor on Asset Acquisition Transaction

(Translation)

Opinion of the Independent Financial Advisor

on Asset Acquisition Transaction

of

RATCH Group Public Company Limited

Prepared by

Advisory Plus Company Limited

August 30, 2021

		Table of Contents
			Page
Executive Summary ................................................................................................................................................................	4
1. Characteristics and details of the transaction............................................................................................................	10
1.1	General characteristics of the transaction .............................................................................................................	10
1.2	Date of the transaction ..........................................................................................................................................	13
1.3	The parties involved and nature of their relationship with the Company ............................................................	14
1.4	Details of the assets being acquired ......................................................................................................................	15
1.5	Total value of consideration..................................................................................................................................	36
1.6	Basis for determination of value of consideration................................................................................................	37
1.7	Type and size of the transaction ...........................................................................................................................	38
1.8	Sources of funds ....................................................................................................................................................	43
1.9	Conditions for the transaction ...............................................................................................................................	44
1.10	Overview of the Company's business operation ..................................................................................................	45
1.11	Summary of the shares sale and purchase agreement ..........................................................................................	45
2. Reasonableness of the transaction...............................................................................................................................	46
2.1	Objective and necessity of the transaction............................................................................................................	46
2.2	Advantages and disadvantages of the transaction ................................................................................................	47
2.3	Advantages and disadvantages of not entering into the transaction ....................................................................	50
2.4	Risks of the transaction .........................................................................................................................................	51
3. Fairness of price and conditions for the transaction.................................................................................................	55
3.1	Fairness of price ....................................................................................................................................................	55
3.2	Appropriateness and conditions for the transaction ...........................................................................................	106
4. Conclusion of opinion of the Independent Financial Advisor................................................................................	109
Attachment 1	Summary of the shares sale and purchase agreement

	Definitions
The Company or RATCH	RATCH Group Plc.
RHIC	RH International Corporation Ltd., a direct subsidiary in which the Company holds 100%
	of the issued and paid-up shares
RHIM	RH International (Mauritius) Corporation Ltd., an indirect subsidiary in which the
	Company holds, through RHIC, 100% of the issued and paid-up shares
RHIS	RH International (Singapore) Corporation Pte. Ltd., an indirect subsidiary in which the
	Company holds, through RHIM, 100% of the issued and paid-up shares
PE	PT Paiton Energy
MCBV	Minejesa Capital B.V.
MPBV	Minejesa Power B.V., a subsidiary in which MCBV holds 100% of the issued and paid-
	up shares
IPM	IPM Asia Pte. Ltd.
IPMOMS	IPM Operation and Maintenance Services Pte. Ltd. , a subsidiary in which IPM holds
	100% of the issued and paid-up shares
POMI	PT Paiton Operation and Maintenance Indonesia, a subsidiary in which IPM holds
	84.075% of the issued and paid-up shares
P3	Paiton Unit 3 of PE, having a generating capacity of 815 MW and commencing
	commercial operation on March 18, 2012 (the power purchase agreement to expire on
	March 31, 2042)
P7	Paiton Unit 7 of PE, having a generating capacity of 615 MW and commencing
	commercial operation on May 22, 1999 (the power purchase agreement to expire on
	March 31, 2042)
P8	Paiton Unit 8 of PE, having a generating capacity of 615 MW and commencing
	commercial operation on July 10, 1999 (the power purchase agreement to expire on
	March 31, 2042)
P3 Power Plant	A coal-fired thermal power plant of PE, having one power production unit, i.e. P3
P7/8 Power Plant	A coal-fired thermal power plant of PE, having two power production units, i.e. P7 and
	P8
Paiton Energy Project	A coal-fired thermal power plant project of PE, consisting of two power plants, P7/8 and
	P3 Power Plants, with a combined capacity of 2,045 MW
Group of Target Companies	PE, MCBV and IPM
Mitsui	Mitsui & Co., Ltd.
PPF	Paiton Power Financing B.V., a juristic entity in which Mitsui holds 100% of the issued
	and paid-up shares

Indonesia	The Republic of Indonesia
PLN	PT Perusahaan Listrik Negara, the state electricity company of the Republic of Indonesia
PPA	Power purchase agreement between PE and PLN
IFA	Independent Financial Advisor, Advisory Plus Co., Ltd.
Notifications on	The Notification of the Capital Market Supervisory Board No. TorChor. 20/2551 Re:
Acquisition or Disposal	Rules on Entering into Material Transactions Deemed as Acquisition or Disposal of
	Assets and the Notification of the Board of Governors of the Stock Exchange of Thailand
	Re: Disclosure of Information and Other Acts of Listed Companies Concerning the
	Acquisition or Disposition of Assets B.E. 2547
SEC	The Office of the Securities and Exchange Commission
SET	The Stock Exchange of Thailand

- TRANSLATION -

The English Translation of the Independent Financial Advisor's Opinion has been prepared solely for the convenience of

foreign shareholders of RATCH Group Plc. and should not be relied upon as the definitive and official document. The Thai language version of the Independent Financial Advisor's Opinion is the definitive and official document and shall prevail in all aspects in the event of any inconsistency with this English Translation.

AP. 018/2564

	August 30, 2021
To	The Board of Directors and Shareholders
	RATCH Group Plc.
Subject	Opinion of the Independent Financial Advisor on acquisition of assets

The Board of Directors' Meeting No. 8/2021 of RATCH Group Plc. ("the Company" or "RATCH"), held on August 24, 2021, granted the approval for the Company to propose the shareholders' meeting to consider and approve the investment in Paiton Energy Project at a total value of USD 809.60 million (or approximately Baht 25,421.68 million) by giving the approval for RH International (Singapore) Corporation Pte. Ltd. ("RHIS") (a subsidiary in which the Company indirectly owns a 100% stake through RH International (Mauritius) Corporation Ltd. ("RHIM") which is indirectly wholly owned by the Company through RH International Corporation Ltd. ("RHIC")) to enter into the transaction as follows:

1. Purchase of 19,332 ordinary shares in PT Paiton Energy ("PE"), representing 45.515% of PE's issued and paid-up shares, from Mitsui & Co., Ltd. ("Mitsui"), which is not a connected person of the Company, at a price of USD 7 0 7 . 2 0 million (or approximately Baht 22,206. 29 million), with PE being the owner of two coal-fired thermal power plants (three power production units) with a combined capacity of 2,045 megawatts
   ("MW");
2. Purchase of 2,275,750 ordinary shares in Minejesa Capital B.V. ("MCBV"), representing 45.515% of MCBV's issued and paid-up shares, from Paiton Power Financing B.V. ("PPF"), a juristic entity in which Mitsui holds 100% of the issued and paid-up shares, at a price of USD 53.50 million (or approximately Baht 1,679.92 million), with MCBV serving as a provider of funding sources for PE; and
3. Purchase of 366,936,795 ordinary shares in IPM Asia Pte. Ltd. ("IPM"), representing 65.00% of IPM's