BDMS makes tender offer for Bumrungrad
published : 27 Feb 2020 at 15:29
Bangkok Dusit Medical Service Plc (BDMS) has launched a tender offer to take over the shares it does not already own in Bumrungrad Hospital Plc (BH) at 125 baht each.
The company also said it was willing to sweeten the offer by up to 20%, or to 150 baht, valuing the tender at not more than 102.7 billion baht from 85.6 billion at the base price.
The news drove up BH's share prices by 15.5% to 127.50 baht at 3.38pm on Thursday.
BDMS informed the Stock Exchange of Thailand before the market opened that its board had approved the tender on Wednesday.
BDMS is currently the largest shareholders of BH, with 25% or 182.5 million shares. According to shareholders data on the Stock Exchange of Thailand as of Aug 23, 2019, BH's second largest shareholder was Bangkok Insurance, of Bangkok Bank and the Sophonphanich family, with 14.6%.
The tender comprises 546.3 million common shares, accounting 74.8% of all issued shares, and 1.2 million preferred shares (0.17%). BDMS will also buy BH's debentures, which can be converted into another 137,300 common shares.
According to BDMS, Thailand's medical services have gained international recognition and the country has potential to attract more international patients.
BDMS, 20%-owned by Prasert Prasarttong-Osoth, who also owns Bangkok Airways, operates the largest hospital network in Thailand. BDMS has six groups with 43 facilities in Thailand and two in Cambodia. They include Bangkok Hospital, BNH Hospital, Phyathai Hospital, Paolo Memorial Hospital, Samitivej Hospital and The Royal Hospital.
BH operates the Bumrungrad International Hospital in Bangkok's Sukhumvit area and the Ulaanbaatar Songdo Hospital in Mongolia.
At 3.39pm on Thursday, BDMS shares climbed 3.2% to 22.60 baht in trade worth 1 billion baht. BH shares jumped 15.5% to 127.50 baht at 3.38pm in trade worth 1.1 billion baht after peaking at 133 baht when the market opened.