A Failed Relationship with SIRI, Creating a Path for BTS to Find NOBLE
A Failed Relationship with SIRI, Creating a Path for BTS to Find NOBLE.
At first, It was thought that BTS Group Holdings Public Company Limited (BTS) and Sansiri Public Company Limited (SIRI) would maintain their lovely relationship in the real estate business after the establishment of a joint venture company to penetrate the condominium market along the BTS line.
It was a perfect strategy that covered each other’s weaknesses. BTS who lacks experience in real estate got an expert like SIRI as a partner while SIRI who has a problem in finding landmarks for its projects was supported by BTS who has plenty of land on its hands.
The cooperation between these two companies sent out positive sentiment across the market.
However, the relationship between BTS and SIRI abruptly ended after SIRI announced that the company had sold all of its stake in “BTS Sansiri Holding Eighteen” in which SIRI holds 50% in the joint venture company to Noble Development Public Company Limited (NOBLE) at a value of 41.03 million baht and renamed the company name to Ratchada Alliance Company Limited.
After the transaction, NOBLE had officially turned into BTS’ partner.
Speaking of the failed relationship between BTS and SIRI, there were some signs indicating a crack in the relationship when BTS joined Ananda Development Public Company Limited (ANAN) in the development of a mega project of Thana City with an area over 100 rai.
The cooperation with ANAN showed that BTS had begun to walk away from the relationship with SIRI and their businesses.
As for BTS and NOBLE, the relationship did not started after striking a deal with SIRI. BTS had shown its interest in NOBLEsince the beginning of 2019 when the company acquired 9.11% of the voting rights in NOBLE and held the position of the 4th major shareholder in NOBLE.
The business outlook between BTS and NOBLE would be similar to what BTS once did with SIRI. The two companies would support each other’s weaknesses to build their profile and the bottom line in the financial statement, underlying net profit.