Krungdhon Hospital Pcl, Thailand’s second-smallest publicly traded hospital operator, surged to a record in Bangkok trading after its largest shareholder announced a buyout plan.
Krungdhon jumped 12 percent to 62.75 baht at the close, the highest level since it started trading in January 1990. The stock earlier rallied by the 30 percent daily limit. The 497-member SET Index advanced 0.9 percent.
Bangkok Dusit Medical Services Pcl, the country’s biggest private-hospital operator, will offer to buy the remaining shares in Krungdhon after agreeing to boost its stake to 45 percent from 20 percent, the companies said in separate regulatory filings today. Krungdhon will benefit from Bangkok Dusit’s larger shareholding through upgraded facilities, according to Bualuang Securities Pcl.
“The acquisition price is not expensive,” Narumon Ekasamut, a Bualuang analyst, wrote in a report today. “The key benefit is geographical diversification.”
Bangkok Dusit agreed to buy 3.74 million shares, or a 25 percent stake, of Krungdhon at 55 baht each from existing major shareholders, it said in its statement to the stock exchange. The company will make the tender offer to other shareholders at the same price, according to the statement.
Bangkok Dusit’s offer price for Krungdhon, while 1.8 percent lower than yesterday’s close, was 20 percent higher than the average closing level in the past three months, according to data compiled by Bloomberg. Krungdhon, which has a market value of 941.3 million baht ($32 million), is the second smallest hospital stock in the 14-member SET Health Care Service Index.
Bangkok Dusit will benefit from a broadening of its customer base within its hospital business, it said. Bangkok Dusit was unchanged at 129 baht in Bangkok.