Indonesian conglomerate Lippo Karawaci has officially sold most of its stake in local hospital chain Siloam International Hospitals to CVC Capital Partners, which has become the majority stakeholder.
According to a disclosure on the Indonesia Stock Exchange (IDX), CVC’s Prime Health Company Limited and Lippo Karawaci’s Megapratama Karya Persada have divested 5.85 billion shares in Siloam Hospitals for about 16.68 trillion rupiah ($1.03 billion).
As a result of the divestment, Megapratama Karya Persada’s stake in Siloam has reduced to 19.45% from 39.17%. Meanwhile, CVC’s Sight Investment Company Limited has increased its stake to 55.4% from 10.4%, while Prime Health Company Limited’s has declined to 13% from 26.18%.
The transaction is part of an agreement signed between CVC Capital Partners and Lippo Karawaci in May 2024, which mentioned CVC would acquire a 10.4% interest in Siloam Hospitals for 3.86 trillion rupiah ($240 million).
Lippo Karawaci is said to have sold more than 1.35 million shares to CVC’s Sight Investment Company Pte Ltd. The development confirms DealStreetAsia’s report in May 2024 that a CVC-led consortium was acquiring a 65% stake in Siloam Hospitals for around $1.6 billion.
Siloam is one of Indonesia’s largest private hospital networks, with over 41 branches and 25 clinics. Due to a surge in operating expenses, the company reported a lower net profit of 314.28 billion rupiah in the first half of 2024 compared to 503.37 billion rupiah in the same period last year. Siloam Hospitals’s revenue increased by 13.82% to 6 trillion rupiah in H1 2024.
In the healthcare sector in Indonesia, CVC Capital has also invested in pharmaceutical distributor SOHO Global Health.
The private equity group’s other healthcare investments in Asia include Vietnam-based Phuong Chau Group, Indian cancer care provider Healthcare Global, Japanese pharmacy chain and hospital outsourcing service business Sogo Medical Group, and Chinese pharmacy chain Xi’an Yikang.
Southeast Asia’s hospital assets have seen a spate of private equity deals of late. DealStreetAsia reported last week that the sale process of Malaysia’s Island Hospital, owned by Hong Kong-based buyout firm Affinity Equity Partners, is drawing interest from multiple regional healthcare groups, such as Malaysian private healthcare group IHH Healthcare and Singapore-based Health Management International.
