ASEAN KEY DESTINATIONS
Asia-Pacific's second largest hospital group formed
The merger will add eight facilities - four each from the Phyathai Hospital group and the Paolo group - to BGH's network, bringing the total to 27. It will run a total of 4,639 registered beds, treating 20,000 outpatients a day.
BGH, whose customers tend mainly to be high-income earners and foreigners, now operates 19 hospitals (17 of which are in Thailand and the rest in Cambodia), with 2,992 registered beds and more than 10,000 outpatients per day at the moment.
Customers of Phyathai and Paolo hospitals are mostly middle-class people and patients with private health-care insurance coverage.
Health Network Group currently holds a 49.17% stake in SET-listed Prasit Pattana Plc (PYT), which operates the Phyathai Hospital chain and has full control of the Paolo hospital group. With an existing 19.47 percent stake in PYT, BGH will see its holding grow to 68.64 percent after the acquisition. BGH will therefore be subject to a mandatory tender offer to purchase all of the remaining 31.36 percent of PYT's shares.
BGH may propose two options to PYT's minority shareholders. It will either make a cash payment at the rate of 3.71 per share or issue BGH's new ordinary shares at the price of 37.75 baht each at the ratio of 10.1706 PYT shares to one new BGH ordinary share.
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