Sabuy Technology said on Thursday that it will be lowering its purchase price for Singer Thailand to THB22.00 per share, citing the recent market volatility triggered by the fallout of the U.S.-based Silicon Valley Bank and a heavy selloff in Swiss banking Credit Suisse.
In its statement released on Thursday, Sabuy Technology Public Company Limited (SET: SABUY) reiterates its interest in investing in no more than 123,351,300 ordinary shares of Singer Thailand Public Company Limited (SET: SINGER). However, with the current market condition, the Board of Directors’ urgent meeting held on March 15 has resolved to reduce the investment price for SINGER from THB27.00 per share to THB22.00 per share, which is close to the book value of SINGER’s financial statements at THB21.82 per share, and bringing the total investment to no more than THB 2,713,728,600.
According to SABUY, Silicon Valley Bank and Signature Bank both experienced a “Bank Run” because of a lack of trust from their depositors as a result of the high volatility seen by global financial markets following Federal Reserve comments regarding interest rate hikes. The financial market was also impacted by news of Credit Suisse’s heavy sell-off during trading on the Swiss stock exchange on March 15, 2023, which plummeted to a record low for the second day after Saudi National Bank, Credit Suisse’s largest shareholder, rejected Credit Suisse’s capital increase.
Negative reactions were seen across the board in the world’s financial markets as a result of these two reports, with the Thai stock market index falling by 96.06 points between March 1 and March 14. However, no damage has been reported thus far in Thailand.
To further mitigate the risk of prices that may decline swiftly or be affected by the present events, the Board of Directors of SABUY also recommended that the Investment Committee should review investments and exercise more caution in making investment decisions, such as decreasing the trading portfolio’s weight of investment in equities, especially Thailand stocks, and thereby requesting investment by considering the advantages to the company and its shareholders.