Jakarta. Elang Mahkota Teknologi, or Emtek, an Indonesian media conglomerate controlled by the Suriaatmadja family, has closed a $41.5 million deal to acquire a majority of shares in a publicly listed hospital operator Sarana Meditama Metropolitan, the company said in a statement on Tuesday.
Emtek spent Rp 581 billion ($41.5 million) to buy 71.88 percent Sarana Meditama shares from Omni Health Care at a purchase price of Rp 137 per share, the company said in a statement.
"The objective of the acquisition is to expand and strengthen the existing business lines in the field of health services through its subsidiaries," the company said.
Sarana Meditama operates four hospitals in Pulomas in Jakarta, Alam Sutera, and Pekayon in Banten and Cikarang in West Java under the Omni Hospital brand. The company is building its fifth in Balikpapan, East Kalimantan.
Sarana Meditama reported Rp 410 billion loss in the third quarter this year, widening by more than four times from a Rp 98 billion loss in the same period a year ago as patient visits declined amid the Covid-19 pandemic.
In March, Emtek provided up to Rp 123 billion in loans for its healthcare subsidiary Elang Medika Corpora for investment, work financing, and business capital to expand the medical business.
Emtek's latest investment in the hospital business would heighten competition in Indonesia's underserved hospital sector. According to data from the Health Ministry, the country only has 1.16 hospital beds for 1,000 people in 2019. That is just a fifth of five beds for 1,000 people, as recommended by the World Health Organization.
Government hospitals still dominated Indonesia's curative services, but publicly listed operators, like Mitra Keluarga Karyasehat and Siloam Hospitals International, were also growing to serve Indonesia's middle-class' demand for healthcare.