SIRI-BTS: Everyone Has Their Own Ways

Obviously, the relationship between Sansiri Public Company Limited (SIRI) and BTS Group Holdings Public Company Limited (BTS) already split up after SIRI acquired 9 joint venture companies between the Company and U City Public Company Limited (U), an affiliate of BTS Group, consist of 1) BTS Sansiri Holding Two Limited 2) BTS Sansiri Holding Three Limited.

 

3) BTS Sansiri Holding Five Limited 4) BTS Sansiri Holding Six Limited 5) BTS Sansiri Holding Eleven Limited 6) BTS Sansiri Holding Twelve Limited 7) BTS Sansiri Holding Fourteen Limited 8) BTS Sansiri Holding Seventeen Limited and 9) BTS Sansiri Holding Twenty Three Limited in the total amount of 1,547 million Baht.

 

SIRI also disposed of 2 joint venture companies to U, namely BTS Sansiri Holding Thirteen Limited and BTS Sansiri Holding Twenty One Limited in the total amount of 1,188 million Baht.

 

Does that mean the joint investment between SIRI and BTS to step into condominiums along mass transit lines has already ended..? As of now, it definitely does.   

 

However, it has yet to be clear why SIRI and BTS broke up too early as both of them had just built up a team less than 5 years.  

 

The cooperation was originally to eliminate each company’s weaknesses, in case of BTS, it has land especially landbank along mass transit lines, but does not specialize in real estate development, while SIRI is a real estate developer but lacks land. BTS also strengthened SIRI in matters of capital investment.

 

After splitting up with BTS, SIRI would have to carry more cost as its main weakness is the lack of land. Meanwhile BTS would miss the chance to raise the recurring income business.  

 

Will BTS and SIRI tie up with someone else..?

 

BTS holds 7.50% stake in Ananda Development Public Company Limited (ANAN) and 7.90% stake in Noble Development Company Limited (NOBLE). Or will BTS ally with ANAN or NOBLE..?  

 

Let’s keep an eye on who is going to be a new partner of BTS.