SAWAD-GSB Advance in Auto-Title Loans Business, Joining NOBLE to Further NPL Business

Srisawad Corporation Public Company Limited (SAWAD) has announced its Board of Directors resolution to approve a joint investment transaction between the company and GSB.

 

On November 17, 2020, the Board of Directors approved in principle a joint investment transaction between the company and Government Savings Bank (GSB) in Fast Money Co., Ltd. (FM), SAWAD’s wholly owned subsidiary, in order to operate the business of auto title loans.

The company announced that GSB has an intention to jointly invest with the value of not more than THB 1,500,000,000 (of which are the value of subscription for the newly-issued ordinary shares in FM of not exceeding THB 1,300,500,000 and the value of the purchase of the existing ordinary shares in FM from the company of not exceeding THB 198,900,000 whereby the value of the newly-issued ordinary shares and existing ordinary shares are THB 306 per share).

After the joint investment, GSB will hold no more than 49% of the total shares in FM and SAWAD will hold not less than 49% of the total shares in FM after raised capital fund

 

SAWAD, GSB and FM will enter into relevant contracts or agreements setting out conditions and details of the joint investment. The joint investment will not cause a conflict of interest between the company and a subsidiary in the group companies because the group companies have explicit rules for segregating the businesses, as well as the appropriate and sufficient measures for preventing or diminishing conflicts of interest.

 

Furthermore, SAWAD also announced that its Board of Directors has approved in principle a joint investment transaction between the Company and Noble Development Public Company Limited (NOBLE) in SWP Asset Management Co., Ltd. (SWP), which operates mainly in the non-performing loan and non-performing asset businesses and is the company’s 85 percent-owned subsidiary, in which NOBLE has an intention to jointly invest with the value of about Baht 300,000,000. After the joint investment, NOBLE will hold 20% of the total shares in SWP.