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BDMS sells shares of “Bumrungrad Hospital” 22.71% portfolios receive a total of 18,613.7 million baht, preparing to sell large lots in the first round on November 26, total 90.5 million shares at 103 baht per share , selling 16.6% lower than the market. With a closing price of 123.50 baht on November 23, 2020
November 24, 2020 Ms Narumol Noi-am, Senior Executive Vice President and Chief Financial Officer Bangkok Dusit Medical Services (BDMS) Public Company Limited or BDMS informed the Thailand Stock Exchange (SET) that BDMS has entered into an agreement to sell its ordinary shares. Bumrungrad Hospital Public Company Limited (BH), of which the Company owns 180,715,806 shares, or approximately 22.71% of the total issued and paid-up shares of BH to the buyer at the price of 103 baht per share, equivalent to approximately 18,613.7 million baht were on November 19, 2020
On November 24, 2020, the Company received confirmation from the buyer regarding the certainty of the origin of the funds. Therefore, the company hopes to be able to sell part of its investment in BH common shares through the large commercial board of the Thailand Stock Exchange. Initially, 90,500,000 shares at a price of 103 baht per share or the equivalent of approximately 9,321.5 million baht within November 26, 2020.
Regarding the remaining 9,215,806 shares of BH common stock, or approximately 11.34% of BH’s issued and paid-up shares, the Company expects the sale to be completed by December 2020, with the transaction still uncertain. depends on the success of the buyer’s additional financing.
The sale price is 16.6% lower than the market price compared to the closing price of 123.50 baht on 23 Nov 2020.
Asia Plus Securities estimates that the announcement of the sale of BH shares of BDMS, held as a partner company, is 22.7%, 103 baht per share, for a total of 1.86 billion baht, which is will be divided twice for sale 1. Approximately 11.37% will be sold on November 26, 2020 and 2. The remaining 11.34% will be sold in December 2020, evaluated as negative at BH’s share price because you are selling shares at a price below the market price. And a cessation of investment in BH may indicate the next phase of the business trend. Especially in the new competitors, the Medpark hospital referred to by the research department.
So we continue to recommend Switch BH, but this is positive for BDMS from 1. Expect to record a special profit from the sales of 1.1 billion baht. The fund is primarily used to recover debt, is expected to save interest, close to BH’s lower profit share, and can help expand. If some of the money is invested in BDMS, the Research Department maintains a BUY rating.
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