Poor response to tender offer for Krungdhon
Bangkok Dusit Medical Services (BDMS) failed in its bid to take over Krungdhon Hospital (KDH), as only a few shareholders of the target offered to sell their shares in the tender offer.On March 18, the last day of the tender offer, only 9,247 shares or 0.06 per cent of the total issued shares of Krungdhon Hospital were offered, at Bt55 a share, according BDMS' filing to the Securities and Exchange Commission yesterday.
Royal Bangkok Healthcare (RBH), a wholly owned subsidiary of BDMS - the country's largest hospital network - conducted the tender offer, which kicked off on February 11.
BDMS reported to the Securities and Exchange Commission that after the tender offer, its holdings in Krungdhon Hospital were only 25 per cent, up from 24.94 per cent prior to the tender offer.
In January, its subsidiary announced the investment of Bt700 million for the 24.94-per-cent stake.
Then, Wichai Thongtang, vice chairman of the executive committee of BDMS, said that the planned acquisition was part of the company's vision set by its president, Prasert Prasarttong-Osoth, to grow the business.
The planned acquisition of Krungdhon Hospital was in line with the company's investment model to expand its medical services to cover maximum area of Bangkok.
BDMS currently operates 31 hospitals, of which 23 belong directly to the company, while eight belong to Phyathai Hospital and Paolo Memorial. BGH aims to increase the number of hospitals within the group to 50 by 2015, both in Thailand and neighbouring countries such as Myanmar, Laos and Cambodia. It targets 15-per-cent growth in revenue this year. The firm will enter new provinces in Thailand, Laos and Myanmar.