JAKARTA -- Indonesian property developer Lippo Karawaci said on Friday it sold an 8% stake in Siloam Hospital International, its listed hospital subsidiary, for 1.14 trillion rupiah ($90.4 million) to fund the expansion of its hospital business.
Through two fully owned subsidiaries, Lippo Karawaci sold 92.8 million shares in Siloam for 12,250 rupiah each, an 8% discount off its closing price on Thursday. The buyer was not disclosed.
The sale will reduce Lippo's stake in Siloam from 78.8% to 70.8%. Siloam's shares dropped as much as 6% in morning trading on Friday, while Lippo Karawaci's edged slightly higher.
"The proceeds of this placement will be used to finance hospital projects and associated property businesses," the company said in a stock exchange filing. Siloam currently operates 20 hospitals and plans to add 30 more by 2017.
Indonesia has only nine hospital beds per 10,000 people, data from the World Health Organization shows, which is among the lowest levels in Southeast Asia. High demand for health care has helped Siloam become one of the fastest-growing businesses for Lippo Karawaci, which focuses on mix-used projects that include apartments, hotels and malls.
"Lippo Karawaci intends to remain a majority shareholder in Siloam," the company said. Credit Suisse was the sole bookrunner for the sale.