Bangkok--Sep 20--Ogilvy Public Relations Worldwide
The board of directors of Bangkok Dusit Medical Services Public Company
Limited (BGH), the operator of Bangkok Hospital Group, has recently approved a plan to integrate the business of its four subsidiary hospitals in the eastern region, in order to expand its health and medical service network, as well as underline the Group’s commitment in enhancing its competitiveness and help make Thailand a leading medical service center in Asia.
The planned integration will cover the operations of Bangkok Dusit
Medical Services Plc. and its four subsidiaries namely Bangkok Hospital Pattaya Co., Ltd., Bangkok Hospital Rayong Co., Ltd., Wattanawech Co., Ltd. (Bangkok Hospital Chanthaburi), and Bangkok Hospital Trat Co., Ltd.
For this milestone undertaking, Trinity Advisory 2001 Co., Ltd. has been
appointed as the financial advisor, with Allen and Overy (Thailand) Co., Ltd., as the legal advisor.
According to Dr. Pongsak Viddayakorn, President of Bangkok Dusit Medical
Services Plc., “This initiative is part of our business expansion plan aimed at further enhancing our competitive advantages and strengthening our medical service capabilities. By making tender offer to swap the remaining stakes from the shareholders of the four companies, BGH will have 100% stake in these subsidiaries. The shareholders of the four companies will then become BGH shareholders. The move is expected to further strengthen our financial status and ability to offer higher return on investment for investors, while also upgrading service efficiency at the same time. This means better competitive advantage and better quality of medical services for these hospitals.
“The four hospitals in the region also stand to gain huge benefits in
terms of medical service, equipment, expertise, people development and patient transfer efficiency and convenience because of better coordination and cooperation among member hospitals in the group. In the long term, this comprehensive strategy will be an important factor in steering all our network hospitals in the region towards one common direction. Faster work processes, elimination of redundancy, a more well-defined customer base, operational cost savings and greater synergy will also be among the key benefits from the plan.”
At present, BGH has 49% stake in Bangkok Hospital Pattaya, 81% in Bangkok Hospital Rayong, 62% in Wattanawech (Bangkok Hospital Chanthaburi), and 63% in Bangkok Hospital Trat.
BGH will make tender offer to swap the remaining stakes in the four
companies with BGH’s shares. BGH will buy the stake at the following rates --Bangkok Hospital Pattaya at Bt35.84 per share, Bangkok Hospital Rayong at Bt12.07, Wattanawech (Bangkok Hospital Chanthaburi) at Bt26.98, and Bangkok Hospital Trat at Bt5.02 per share. Their par value is Bt1 for a BGH share, Bt5 for a share in Bangkok Hospital Trat and Bt10 per share for the rest.
For the share swap, BGH will use parts of its initial shares held by
Bangkok Hospital Pattaya, amounting to 39,183,026 shares, valued at Bt14.59 per share, and no more than 20 million newly issued shares worth Bt290 million, to exchange for the remaining stakes in the four companies. Dilution Effect on BGH share is 1.69%.
“We view the eastern region as a high-potential area characterized by
continuous economic growth. Apart from being an important tourist destination that is heavily promoted by the government, it is also one of the center of economic, transport and industrial development. Given these conditions, an increase in the demand for quality medical services in the region is required. The business integration plan, therefore, will enable these four hospitals to provide even better quality medical services and benefits to people living in these areas. This is a key factor that will help Thailand emerge as a medical service hub in Asia,” said Dr. Pongsak.
Following the BGH board of directors’ approval of the plan, the matter
will be further discussed at a shareholders’ meeting scheduled on October 17, 2005 to gain shareholders’ approval. After shareholders’ approval, the plan will be implemented and completed within this year.
Bangkok Dusit Medical Services Public Company Limited is the owner and
operator of Bangkok Hospital, which has been providing comprehensive medical services to Thai and foreign customers since 1972. The hospital has been awarded the ISO 9002, ISO 9001: 2000, Hospital Accreditation (HA) from the Ministry of Public Health, ISO 14001 for excellent environment management system and the 18001/OHSAS14001 for its health and safety standard. The company has invested in 14 leading private hospitals nationwide. The compan hospitaly has been selected by the Medical Association of Thailand to provide Ccontinuing Mmedical Eeducation (CME) to medical practitioners.
Issued on behalf of : Bangkok Dusit Medical Services Plc.
For further information : Kovit Savangvareesakul
([email protected])
Ogilvy Public Relations Worldwide Ltd.
Tel. 0 2205 6613 End.