PSG Corporation Public Company Limited (the Company) announced that the Board of Directors meeting resolved to approve the signing of a Turnkey Contract for Resettlement Development Site Construction with Phornsavarn Development Sole Company Limited, to undertake the construction of new communities and infrastructure located in Mueang Chomphet, the Lao People's Democratic Republic. The project value is THB 5,000,000,000 (VAT exclusive) and will have a construction period of approximately 55 months. The Company will enter into the construction contract with Phornsavarn Development sole Company Limited in due course.
The Board of Directors meeting resolved to approved the signing of an Amendment Agreement to the Turnkey Contract for the Expansion of Coal Production Phase 1 according to the project owner's requirement and to adjust the project's construction plans. Such adjustment requires increases and decreases in the quantities and amendment to certain scopes of work. Both parties have agreed to extend the construction period from 32 months to 43 months.
Despite the amendment, the total construction contract value remains unchanged and the Company's plan to eliminate accumulated losses as previously reported at the 2023 Annual General Meeting of Shareholders is unaffected. Such construction period extension is at the request of the project owner and is not caused by any delay or fault of the Company. The Company is under negotiation to enter into the amendment agreement with Xekong Power Plant Company Limited and will conclude the agreement in due course.
In this regard, the signing of the amendment agreement is deemed as entering into a transaction with a related person in accordance with the Securities and Exchange Act B.E. 2551 (2008), including its subsequent amendment, and is also considered a connected transaction under the Notification of the Capital Market Supervisory Board No. TorChor.21/2551 (2003) (the "Notifications on Connected Transactions"). Nevertheless, the signing of the amendment agreement is a normal business transaction of the Company and such transaction is subject to general trading conditions (arms-length basis) which the Board of Directors has already resolved to approve in principle for the entering into such transaction, as a result, exemption from the Notifications on Connected Transactions under Section 89 /12 (1) of the Securities and Exchange Act has been granted.