THURSDAY, March 28, 2024
nationthailand

"Business as usual' at company

"Business as usual' at company

Bangkok Chain Hospital insists its business operations will not be affected despite its second-largest shareholder, Bumrungrad Hospital, having sold its stake in the company.

Bumrungrad yesterday sold its holding in the company, totalling 498.74 million shares or 25 per cent of the issued shares of the hospital operator, to private-placement local investors and/or domestic and international institutional investors through an overnight placement process via the Stock Exchange of Thailand.
An analyst at Bualuang Securities estimates Bumrungrad will make a gain of Bt676 million from the divestment, which will be booked in the current third quarter.
In a filing to the SET yesterday, Bumrungrad said it had sold the shares for Bt9.15 each, totalling Bt4.56 billion.
Bualuang Securities research had already anticipated a record Bumrungrad core profit for the third quarter of at least Bt580 million, but as a result of the asset sale the securities house now expects unprecedented net earnings of Bt1.3 billion for the period, the analyst said.
The analyst also expects Bumrungrad to be considering a new acquisition and/or investment after selling its stake in Bangkok Chain.
Bumrungrad could now consider buying a bigger plot on Phetchaburi Road, and then building a new hospital on the site rather than just support departments.
Chalerm Harnphanich, chairman and chief executive officer of Bangkok Chain, said the biggest shareholder in the company remained the Harnphanich family, and there would be no change in the business’s management structure or operating strategy.
The share disposal was a normal business move, he said, adding that Bumrungrad’s share-holding had not reinforced Bangkok Chain.
However, the stake disposal affected Bangkok Chain’s stock price, which plunged 8.12 per cent yesterday to close at Bt9.05.
Chalerm acknowledged that the sale had influenced investor sentiment, but said he believed the stock price would reflect the company’s real value.
The bottom line for the company this year is expected to be higher than last year’s, thanks to an increase in the number of customers and additional revenue from services under the social security scheme, he said.
The company also forecasts that revenue and net profit in the second quarter will be better than in the first three months of the year.
Meanwhile, Bangkok Chain will start realising revenue from its new hospital under the brand The World Medical Centre in the current quarter.
The new facility will officially provide services from October, the company says.

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