Healthcare tycoon Prasert Prasarttong-osoth, founder and owner of Bangkok Dusit Medical Services (BDMS), the country's largest hospital network, announced on Wednesday it had scrapped a plan to take over Bumrungrad International Hospital (BH).
The global economic slowdown caused by the pandemic and its effect on BH stock prices were cited as reasons for quashing the deal.
"If stock prices fell to their lowest levels, BDMS would not be allowed to buy BH shares because of Securities and Exchange Commission conditions that limit buying shares to no more than 25%," he said. "If buying more than 25%, BDMS must make a conditional voluntary tender offer that has already been opposed by a majority of BH's shareholders."
Mr Prasert said BDMS has no plans to buy shares from BH in the future.
"We're not interested in buying BH's business because we have new investment projects to focus on, such as the U-tapao airport," he said.
BDMS is the largest private hospital network in Thailand with 7,732 beds.
BH declined to comment to the Bangkok Post about the deal.
In February 2019, BDMS announced its company's board directors had approved a conditional voluntary tender offer for all of the securities of BH, confident in the hospital's strong growth potential. However, the deal raised concerns from analysts and regulators about monopoly power in the sector. BDMS planned to make a tender offer price at 125 baht per share.
BH shares dropped 2.50 baht or 2.15% to 114 on Wednesday.