Istithmar and Temasek invest in Bumrungrad
Istithmar PJSC of the United Arab Emirates (Istithmar) and Temasek Holdings (Private) Limited of Singapore (Temasek) have each purchased 43,370,743 shares of Bumrungrad Hospital Public Company Limited (Bumrungrad) from Sinnsuptawee Asset Management Company Limited (Sinnsuptawee), a 99.99 per cent owned subsidiary of Bangkok Bank Public Company Limited.
The transaction took place on 20 January 2006.
‘Our management has been in close discussions with both Istithmar and Temasek for some time,’ says Mr. Curtis J. Schroeder, Group Chief Executive Officer of Bumrungrad Hospital Public Company Limited. ‘We are very happy that they have become part of our strong shareholding structure. They are both world-class institutions and their active participation in Bumrungrad will help infuse increased dynamism to our expansion efforts.’
The purchase of the shares by Istithmar and Temasek will bring each of their shareholding in Bumrungrad to 5.94 per cent, while Sinnsuptawee’s stake will reduce from 23.97 per cent to 12.09 per cent of total paid-in capital.
As long-term strategic partners, both Istithmar and Temasek have also entered into a Memorandum of Understanding with Bumrungrad to make direct investments in Bumrungrad International Company Limited (‘BIL’), the investment vehicle for Bumrungrad’s international investments. Istithmar and Temasek have agreed in principle to co-invest in BIL which shall be subject to further due diligence process and approval by the various parties. BIL invested in Asian Hospital of the Philippines in 2005 and has announced plans to build a new hospital in Dubai together with Istithmar. With additional investment in BIL by Istithmar and Temasek, BIL will be in a position to actively pursue additional projects throughout the region.
‘Istithmar and Temasek bring not only their financial resources and discipline, but also their international investment expertise, networks and contacts which are perfect complements to our own expertise in regional healthcare investment and management,’ adds Mr. Schroeder. ‘Our expansion drive is aimed at capturing the benefits of regional growth in healthcare, while providing a referral network and other synergies to our flagship operations in Bangkok.’
‘We are pleased to become a shareholder of Bumrungrad Hospital,’ says Mr. Tan Suan Swee, Managing Director, Investments, of Temasek Holdings. ‘As one of the leading private hospitals in Southeast Asia, Bumrungrad is an attractive investment with good domestic and regional growth potential. This investment also reinforces our positive outlook on the prospects of the healthcare sector in this region.’
‘Thailand’s impact on the healthcare industry is sizeable with medical tourism becoming more and more popular,’ added Sultan Bin Sulayem, Istithmar’s Executive Chairman. ‘We chose Bumrungrad for its excellent track record, for successful management and strong reputation. We see immense growth potential in this investment and an opportunity for Istithmar to play a pivotal role in the enhancement of growth throughout Thailand, Asia and the Middle East.’
Mr. Muneef Tarmoom, CEO of Istithmar added, ‘Istithmar’s investment in Bumrungrad reflects our keen interest in seeking value investments in emerging markets that have recently been characterized by rising incomes, beneficial demographic trends, and deregulation, resulting in compelling opportunities for investors to team with strong management.’
