Sub Sri Thai Public Company Limited

An independent financial advisor has opposed the plan of Sub Sri Thai Public Company Limited, or SST, to mortgage land as collateral for a loan facility of up to 300 million baht extended to Mud and Hound Public Company Limited, or MUD, deeming it unreasonable and recommending that shareholders not approve it. The IFA argued that the return is low compared to alternatives, the agreement lacks a clear mortgage timeframe, and there is high risk if MUD defaults, potentially causing SST to lose a valuable asset. However, the audit committee and the board of directors, excluding interested directors, still resolved to present the matter to the shareholders' meeting, stating that the transaction is necessary and beneficial in the long term because it will help MUD secure funds to bolster liquidity and working capital. MUD faces constraints in finding funding sources and lacks sufficient collateral. Moreover, MUD's financial status is critical to the group's stability, as a default by MUD could trigger cross-defaults affecting SST as an investor. The final decision rests with shareholders, who may use the IFA's opinion in their consideration.