Bumrungrad Hospital Plc (BH), the country's second-largest listed hospital operator, will be counting on Health Horizons Enterprises Pte Ltd, its new investment arm, to spearhead overseas investment following its failed attempt to gain management control in Bumrungrad Hospital International (BHI).
According to a BH source, the Thai hospital plans to dilute its 30% stake in BHI, which has been instrumental to the group's international expansion. BHI used to hold a 40% stake in Manila-based Asian Hospital (AHI), but later divested its stake.
Health Horizons Enterprises (HHE) was set up last month in Singapore with registered capital of US$20,000. HHE, in which BH holds an 80% stake, last Friday acquired a controlling interest in Ulaanbaatar Songdo Hospital (UBSD), a leading hospital in the Mongolian capital.
HHE owns 100% of the common shares of Bumrungrad Mongolia LLC (BML), which holds 51% of the common shares of Seoul Seniors Tower LLC (SST). SST owns and operates Ulaanbaatar Songdo Hospital.
BML issued share capital of 4.08 billion Mongolian tughrik (about 74.5 million baht) at a par value of 1,000 tughrik per share.
BH set capital expenditures this year at 1.2 billion baht excluding mergers and acquisitions.
"Hospitals in South Korea and Singapore have targeted it for referrals," said Dennis Brown, Bumrungrad’s corporate chief executive. "Most Mongolians with serious medical problems who can afford overseas treatment would be seen at UBSD, since it is the leading private hospital in the country. This gives us an excellent opportunity to work with UB Songdo Hospital to expand their diagnostic and treatment services and coordinate tertiary referrals at the source."
Mongolia has one of the world’s fastest-growing economies. For several years Bumrungrad has been one of the main destinations for Mongolians seeking overseas treatment.
BH remains upbeat about revenue growth of 10-15% this year from 14.65 billion baht in 2013. Foreign patients make up 61% of the company's revenue.
Shares of BH closed yesterday on the SET at 96.3 baht, up 50 satang, in trade worth 80.9 million baht.