JAKARTA (TheInsiderStories) – Indonesian hospital operator, PT Siloam International Hospitals Tbk (IDX: SILO) plans to conduct a stock buyback, said the management on Friday (11/01). For the plans, the unit of Lippo Group, prepared funds Rp100 billion (US$7.09 million).
The company scheduled the shareholders meeting on Dec 9 to approve the corporate action. The number of shares to be repurchased is one percent of the company’ issued and fully paid capital or 16.25 million shares.
Siloam explained, this buyback is carried out in order to meet employee stock options plan (MESOP) program. It said, the buyback program will be carried out on Dec 16 to June 9, 2021, and can be stopped according to the company policy.
This year, the hospital operator, plans to open five hospitals across the archipelago. Until the end of 2018, there were 35 hospitals under the umbrella of the company, where 11 hospitals are in the Greater Jakarta areas and 24 other hospitals are spread across Sumatra, Kalimantan, Sulawesi, Bali and Nusa Tenggara.
In addition, Siloam has acquired 30.9 percent of Gamma Knife Center Clinic, brain surgery clinic on Feb. 13, 2019. The acquisition was carried out by a subsidiary named PT Prima Mugi Jaya.
Earlier, OUE Lippo Healthcare (OUELH), other unit of Lippo Group and China Merchants Group entered into an agreement with China Changjiang National Shipping Group Co., to operate their first hospital in Shanghai. The Group now has one hospital and 10 clinics in China, 12 hospitals in Japan, four hospitals in Myanmar,100 clinics combined in Singapore and in Vietnam.
On the other hand, Chinese state-owned conglomerate agreed to a US$1 billion deal with Lippo for the construction of health facilities in China. The deal was part of Riyadi family company’ plan to expand its hospital business in Asia.
Recently, the Group invested $44 million in Chinese giant internet company Tencent Holdings Ltd. through shares and equity-linked notes. Tencent, who owns China’ leading social media application, WeChat, is the second most valuable company in Asia. The investment would be made through its Hong Kong subsidiary and would contribute to the group’ digitalization effort.
Lippo Group is a pan-Asian investment holding company with investments in real estate, department stores, retailing, financial services, news media, telecommunications, hospitality, healthcare, and IT services.
As of the third quarter of 2019, Siloam pocketed revenues of Rp5.21 trillion, jumped by 18.67 percent from the same period last year which amounted to Rp4.39 trillion. While, the net profit was recorded at Rp53.81 billion or jumped by 457.62 percent from the third quarter of 2018 of Rp9.65 billion.
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