SAWAD Signs Agreement with NOBLE to Invest 20% in SWP

Joining Forces to Fully Engage in Business - Targeting 4 Billion Baht Debt Auction This Year

 

SAWAD has officially signed an agreement with Noble Development Public Company Limited (NOBLE) to invest in its subsidiary “SWP” with a 20% stake, aiming to aggressively pursue the management of non-performing loans (NPL) and assets for sale (NPA). The goal is to auction 4 billion baht worth of financial institution debts this year.

 

Ms. Duangjai Kaewbutta, Managing Director of Sri Sawad Corporation Public Company Limited (SAWAD), revealed that SAWAD signed the investment agreement with NOBLE on Monday, February 22, 2021, after SAWAD shareholders approved the partnership with NOBLE on Wednesday, February 17, 2021.

On Monday, February 22, 2021, NOBLE invested in SWP, which operates in the management of non-performing loans (NPL) and assets for sale (NPA), acquiring a 20% stake valued at 300 million baht. The company will record profits from the sale of SWP shares to NOBLE.

Ms. Duangjai further stated that SAWAD and NOBLE will collaborate closely, leveraging each other's expertise to enhance management capabilities. The business of acquiring and managing debts requires a team with experience and specialized knowledge. This year, SWP aims to auction approximately 4 billion baht worth of financial institution debts.

In addition to debt auctions, SWP will analyze existing assets to determine which projects can be developed to create added value beyond selling auctioned assets. NOBLE, as a leading real estate development company, has expertise in project development and location analysis, which will support SWP's business growth to be stronger and more sustainable.

Mr. Thongchai Busarapant, Chairman and Co-CEO of Noble Development Public Company Limited (NOBLE), stated that this investment aims to diversify and expand opportunities for entering new businesses by utilizing expertise and experience in managing real estate and non-performing assets (NPL) with more guarantees, as well as proficiency in project development, repair, marketing, and sales promotion to increase sales channels for assets acquired through auctions or debt settlements. This will also enhance opportunities to access assets at more favorable prices. The accounting income recognition will be recorded as profit sharing from the 20% investment (Equity Method Accounting).

 

The partnership with SAWAD will enhance the efficiency of SWP's management of secured debts and expand the loan portfolio, promoting and extending SWP's business, which is expected to improve SWP's performance and benefit all stakeholders.