ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business

Indonesian developer sells 8% stake in hospital subsidiary

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.

A Siloam hospital in central Jakarta. The hospital unit has been one of the fastest-growing businesses for Lippo Karawaci.

     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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media