A Bt10.8-billion sum has been approved for the purchase of the 15-rai (2.4-hectare) Park Nai Lert plot on Wireless Road, currently the location of Swissotel Nai Lert Park Hotel and The Promenade shopping centre. Another Bt2 billion will finance the construction of BDMS Wellness Clinic – Bangkok’s first downtown holistic-service medical centre – and Bt1 billion is geared for a medicine factory to support the centre.
The Park Nai Lert transaction is equivalent to 11 per cent of BDMS’s end-2015 assets, which were valued at Bt102.33 billion.
BDMS’s share price yesterday closed at Bt21.60, down by 1.82 per cent from Bt22 on Wednesday.
In its filing to the Stock Exchange of Thailand, BDMS noted that this acquisition would enable the hospital group to expand its operations and capture business opportunities from the increasing demand for preventive medicine in the longevity and anti-ageing areas.
The clinic will be the first of its kind in Asia, BDMS said. The company believes that the wellness clinic will help enhance BDMS’s reputation and brand recognition globally. The clinic will further enhance Thailand’s reputation and increase the country’s competitiveness as a leading provider of healthcare services.
BDMS will use its cash flow and loans from financial institutions and/or the issuance of debentures and convertible bonds to fund the acquisition.
Siam Commercial Bank, the financial adviser for the deal, is ready to support the funding structure.
Pimolpa Suntichok, first executive vice president of SCB, said BDMS was considering various sources of funding, but would use its capital to place a deposit of Bt1.08 billion to the seller. After that the bank will help structure the remaining sources of funds for the client.
SCB alone is able to finance the deal, as BDMS has up to now borrowed little from the bank, she said.
BDMS is owned by Prasert Prasarttong-Osoth, who also owns Bangkok Airways. BDMS currently owns and manages six major hospital brands: Bangkok Hospital, Samitivej Hospital, BNH Hospital, Phyathai Hospital, Paolo Hospital and Royal Hospital.
The new medicine factory will be operated by Medicpharma Co, a non-direct medical business unit owned 90 per cent by BDMS and 10 per cent by other private hospital operators.
“We have an existing factory on Rama II Road but it is already at full capacity, so we need to expand capacity because of high demand for medicines,” said a BDMS executive who asked not to be named.
According to the source, the new factory will be set up in Samut Sakhon. It aims to increase the production of medical products and supply them to affiliated hospitals. It will also supply such products to other hospitals as well as focus more on special medical products. “This factory will produce some products for the new wellness complex to be developed after [BDMS] took over Swissotel Nai Lert Park Hotel,” the source added.