A Lose-Lose Situation for SABUY and MGI

The share price of Sabuy Technology Public Company Limited (SET: SABUY) hit the floor limit for the second straight day on Thursday after the announcement of its major shareholder selling stake to Miss Grand International Public Company Limited (mai: MGI).


MGI announced on Monday that the company purchased 30 million shares of SABUY at the price of THB4.50 per share for a total investment of 135 million baht, representing 1.70% of shareholding in SABUY from its own director and major shareholder Mr. Chookiat Rujanapornpajee, who later stepped down from the position in the company to pave way for MGI’s CEO Mr. Nawat Itsaragrisil to become a Vice Chairman of the Executive Committee of the company.

The position MGI got is quite unorthodox as a company usually gets a position in another company when holding above 10% of the stake. MGI did not only get a position in the Board of Directors, but the position of a vice chairman.


With the report of a major shareholder, who is also the one building SABUY up to this point, selling a portion of his ownership and fueled by an undisclosed big lot transaction of 56 million shares at an average price of THB4.50 per share on Tuesday, the share price of SABUY hit the floor limit of 30% for two straight days.

In just two days the valuation of SABUY was halved from about 8.2 billion baht to 4.02 billion baht.


Meanwhile, the share price of MGI also declined as well since the acquisition date for a total of 41%. More importantly, the valuation of SABUY that the company purchased at THB4.50 per share for a total of 135 million baht, now only priced at 68.4 million baht.


This could be a lose-lose situation for both companies.