Jakarta. Siloam International Hospitals, the hospital operator arm of conglomerate Lippo Group, plans to raise Rp 3.09 trillion ($226 million), for a business expansion approved by shareholders.
Siloam plans to sell 352.2 million new shares, equivalent to 25 percent of its entity.
"In the RUPSLB [Extraordinary General Meeting of Shareholders], we agreed on an offering price of Rp 9,500," Ketut Budi Wijaya, president director of Siloam International Hospitals, said on Monday (04/09).
Siloam will expand its businesses through direct and indirect investments, including acquisitions, asset purchases and capital expenditures. Siloam plans to operate 50 hospitals by the end of 2019, up from 31 hospitals today.
Currently, Megapratama Karya Persada, a subsidiary of Lippo Group, and Prime Health Company Limited, a subsidiary of private equity CVC Capital Partners, both hold stakes of 51.53 percent and 15 percent in Siloam respectively, while the public owns the remaining shares.
In the first quarter of this year, Siloam's cash and cash equivalent was recorded at Rp 662.94 billion, with a total equity of Rp 3.17 trillion. The company has spent 90 percent of its capital expenditures, which was budgeted up to $110 this year, to acquire and build hospitals.
The Jakarta Globe is affiliated with Siloam International Hospitals through the Lippo Group.