Thai Medical Center Sells Shares to Rival Hospital.

Byline: Charoen Kittikanya

Jul. 5--In the latest deal involving consolidation among private hospitals, Vibhavadi Medical Center Plc, operator of Vibhavadi General Hospital, said it had sold 31.225 million ordinary shares of Phattanakarn Vechakit Co (Vibhavadi 2 Hospital) to Ramkhamhaeng Hospital Plc at 9.58 baht per share.

The 300-million-baht deal will give Ramkhamhaeng Hospital a 50 percent stake in Vibhavadi 2 Hospital.

"The deal's objective is mainly to save operating costs, bring about technology transfer and build up purchasing power together among the hospital chains in acquiring medical equipment and supplies. It has nothing to do with the company's financial status," said Chaisith Viriyamettakul, managing director of Vibhavadi Medical Centre Plc, which operates the 400-bed Vibhavadi 1 on Ngam Wong Wan road and the 350-bed Vibhavadi 2 Hospital at Phatthanakarn Road.

"The 300-bed Ramkhamhaeng Hospital has been selected among several interesting offers, including those from foreigners, mainly because of its efficient management measured by the hospital's healthy performance."

In the first quarter of this year, SET-listed Ramkhamhaeng Hospital reported a profit of 53.6 million baht against 43.8 million in the same quarter of last year. It recorded a net profit last year of 163.87 million baht, up from 95.204 million in 2001.

Mr Chaisith added that the death of Lt-Gen Kovit Putthkayon, one of the key directors of the company was also a part of the decision.