SET-listed Bangkok Dusit Medical Services Plc (BDMS) is poised to acquire Mayo Polyclinic Co, which operates a private hospital under the name Mayo Hospital.
Chief financial officer Narumol Noi-am said the acquisition was done via BDMS's subsidiary, Paolo Medic Co in which BDMS holds a 99.99% share, in a deal worth 1.4 billion baht.
"Paolo will pay not more than 1.4 billion baht to Mayo Polyclinic by using its internal cash flow and loans," said Mrs Narumol, adding the transaction is expected to be completed by January 2017.
After sealing the deal Paolo will acquire all assets, liabilities, rights and obligations under Mayo Hospital's agreements and its employees.
As of the end of 2015, Mayo Hospital had 351 million baht in assets and 127 million baht in liabilities.
It posted a net profit of 41.3 million baht in 2015, up from 38 million in the previous year. Its revenue was at 611 million, up from 596 million baht.
Mrs Narumol said the acquisition would enable the company to promptly expand its customer base to middle-class segments in the Bangkok vicinity.
"The hospital (Mayo) is conveniently located next to a planned skytrain station, expected to be completed in 2019. The skytrain line runs a distance of approximately 19 kilometres covering six main residential district areas," she said.
BDMS, Thailand's largest hospital operator under the Bangkok Hospital brand, has just spent 10.8 billion baht to buy Nai Lert Park Hotel to develop it into a holistic services medical centre with a 2-billion-baht investment.
BDMS posted a net profit of 1.67 billion baht in the second quarter of this year, up from 1.49 billion in the same period of last year.
BDMS shares closed yesterday on the SET at 21.9 baht, up 30 satang, in trade worth 894 million baht.