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MEDIA RELEASE
20
Jan 2006
PRESS RELEASE
For Immediate Release
ISTITHMAR AND TEMASEK INVEST IN BUMRUNGRAD
Bangkok –
20 January, 2006
Istithmar PJSC of the United Arab Emirates (Istithmar) and
Temasek Holdings (Private) Limited of Singapore’s (Temasek)
two indirect wholly-owned subsidiaries have agreed to purchase 86,741,486 shares
of Bumrungrad Hospital Public Company Limited (Bumrungrad)
from Sinnsuptawee Asset Management Company Limited (Sinnsuptawee),
a 99.99 percent owned subsidiary of Bangkok Bank Public Company Limited. The
transaction will take place on 20 January 2006 at the negotiated price of Baht
25.00 per share, which was predominantly based on the weighted average share
price prevailing at the time the discussions initially took place.
“Our management has been in close discussions with both Istithmar and Temasek for some time,” says Mr. Curtis J. Schroeder, Group Chief Executive Officer of Bumrungrad Hospital Public Company Limited. “We are very happy that they have become part of our strong shareholding structure. They are both world-class institutions and their active participation in Bumrungrad will help infuse increased dynamism to our expansion efforts.”
The purchase of the shares
by Istithmar and Temasek’s two indirect wholly- owned subsidiaries will
bring Istithmar’s shareholding and the collective shareholding of Temasek’s
two subsidiaries in Bumrungrad to 5.94 percent each, while Sinnsuptawee’s
stake will reduce from 23.97 percent to 12.09 percent of total paid-in capital.
As long-term strategic partners, both Istithmar and Temasek have also entered
into a Memorandum of Understanding with Bumrungrad to make direct investments
in Bumrungrad International Company Limited (“BIL”),
the wholly-owned investment vehicle for Bumrungrad’s international investments.
Istithmar and Temasek have agreed in principle to co-invest in BIL which shall
be subject to further due diligence process and approval by the various parties.
BIL invested in Asian Hospital of the Philippines in 2005 and has announced
plans to build a new hospital in Dubai together with Istithmar. With additional
investment in BIL by Istithmar and Temasek, BIL will be in a position to actively
pursue additional projects throughout the region.
“Istithmar and Temasek bring not only their financial resources and discipline,
but also their international investment expertise, networks and contacts which
are perfect complements to our own expertise in regional healthcare investment
and management,” adds Mr. Schroeder. “Our expansion drive is aimed
at capturing the benefits of regional growth in healthcare, while providing
a referral network and other synergies to our flagship operations in Bangkok.”
“We are pleased to become a shareholder of Bumrungrad Hospital,” says Mr. Tan Suan Swee, Managing Director, Investments, of Temasek Holdings. “As one of the leading private hospitals in Southeast Asia, Bumrungrad is an attractive investment with good domestic and regional growth potential. This investment also reinforces our positive outlook on the prospects of the healthcare sector in this region.”
“Thailand’s impact on the healthcare industry is sizeable with medical tourism becoming more and more popular,” added Sultan Bin Sulayem, Istithmar’s Executive Chairman. “We chose Bumrungrad for its excellent track record, for successful management and strong reputation. We see immense growth potential in this investment and an opportunity for Istithmar to play a pivotal role in the enhancement of growth throughout Thailand, Asia and the Middle East.”
Mr. Muneef Tarmoom, CEO of Istithmar added, “Istithmar’s investment in Bumrungrad reflects our keen interest in seeking value investments in emerging markets that have recently been characterized by rising incomes, beneficial demographic trends, and deregulation, resulting in compelling opportunities for investors to team with strong management.”
About Bumrungrad
Bumrungrad Hospital is a listed company on the stock exchange of Thailand since
1989. Opened in 1980, Bumrungrad’s 554 bed hospital in Bangkok is Southeast
Asia’s largest private hospital providing world class care to approximately
one million patients annually from over 150 countries. Bumrungrad was the first
hospital in Asia to be awarded the prestigious Joint Commission International
Accreditation (JCIA) from the United States. Bumrungrad International Co., Ltd,
(“BIL”) owns and operates hospitals abroad.
For more information, visit www.bumrungrad.com
About Temasek
Temasek Holdings is an Asia investment company headquartered in Singapore. Established
in 1974, it manages a diversified global portfolio of US$63 billion, spanning
Singapore, Asia and the OECD economies. Its investments are in various industries:
telecommunications and media, financial services, property, transportation and
logistics, energy and resources, infrastructure, engineering and technology,
as well as pharmaceuticals and biosciences. For more information, visit www.temasekholdings.com.sg
About Istithmar
Istithmar PJSC is a major investment house based in the United Arab Emirates
focusing on private equity, real estate and other alternative investments. Established
in 2003, Istithmar was created with the key mission of earning exceptional returns
for its investors while maintaining due regard for risk.
Istithmar, which
means investment in Arabic, applies global expertise with local insights to
coordinate the appraisal and implementation of various opportunities. Istithmar’s
‘I’ investment philosophy is based around three core principles
-- Ideas, Inquiry & Integrity -- sets the foundation for the firm which
has a broad portfolio of highly successful companies in markets from North America
to Europe to Asia to the Middle East.
Established with an initial investment capital pool of USD 2 billion, Istithmar has, to date, invested in 30 companies deploying approximately USD 1 billion in equity capital. It currently focuses its activities in four industry verticals – Consumer, Financial Services, Industrial and Real Estate. Istithmar will enhance its own existing capital pool of $2 billion through partnerships with world-class corporations and other leading providers of capital, the creation of investment funds and leverage.
For enquiries, please contact:
Carl V. Stanifer
Group Chief Financial Officer
Bumrungrad Hospital Public Company Limited
Tel: 662 667-1252
Fax: 662 667-1299
www.bumrungrad.com