• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Wichai Bids for All Phyathai Shares: Control Needed to Set Hospitals' Direction

Posted on: Wednesday, 2 November 2005, 09:01 CST

By Charoen Kittikanya, Bangkok Post, Thailand

Nov. 2--Wichai Thongtang yesterday made a tender offer for all securities of Prasit Patana Plc (PYT), the holding company operating the Phyathai Hospital Group.

"We want a controlling stake in PYT, or at least 30 percent, so that we could determine the business direction and management of the hospital group," Mr Wichai said.

The tender offer will be launched on Nov 14 for the 74.46 percent stake with an offer price of 0.375 baht per share.

Mr Wichai, best known as the lawyer defending Prime Minister Thaksin Shinawatra in the asset-concealment case before the Constitutional Court in 2000, purchased 384 million shares of PYT, or 22.18 percent, from the German bank WestLB at 0.375 baht per share last month.

The transaction raised Mr Wichai's holding in PYT to 25.54 percent. Other shareholders include Bank of Ayudhya at 15.76 percent, Health Care Capital Investment (12.9 percent), Sukhumvit Asset Management (8.50 percent) and Bangkok Bank (8.45 percent).

PYT was founded by the family of Dr Arthit Ourairat, a former senior Democrat who quit politics. The Ourairat family now holds just 3 percent in the company.

PYT owns and operates the Phyathai I Hospital on Si Ayutthaya Road, the Phyathai II on Phahon Yothin Road, and Phyathai III Hospital in Thon Buri.

Mr Wichai said he had proposed to purchase all PYT shares, particularly those held by the two banks, but the banks declined to sell them.

He said the tender offer thus focused on small investors and two or three groups of foreign investors that hold a combined 10 percent stake.

The tender offer is scheduled to expire on Dec 20.

Mr Wichai became actively involved in PYT through Paolo Medic, the operator of Paolo Memorial Hospital, after it entered debt restructuring following the 1997 crisis.

PYT, now in the Rehabco (Companies Under rehabilitation) sector of Stock Exchange of Thailand, has made a significant improvement over the last four years from a net loss of 676.02 million baht in 2001.

The company posted a net profit last year of 181.41 million baht on an operating profit of 350.79 million baht in the first six months of this year.

According to Mr Wichai, PYT plans to invest at least one billion baht over the next five years to upgrade the Phyathai chain, particularly the Phyathai II Hospital, into an international facility.

Phyathai Hospital Group is just one of the investments of Mr Wichai, who wants to expand his holdings to include 16 hospitals over the next five years. His goal is to tap into Thailand's booming medical market, particularly among foreigners, with investment costs of about 3-4 billion baht.

Apart from the Paolo Memorial Hospital and PYT, Mr Wichai currently owns controlling shares in seven hospitals including Paolo Siam in the Chok Chai 4 area, the Paolo Panyavej Hospital in Udon Thani and the Wachiraprakan Hospital in Samut Prakan.

Mr Wichai also holds a management contract with Sri Siam Hospital in Bang Kapi.

-----

To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com.

Copyright (c) 2005, Bangkok Post, Thailand

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

Source: Bangkok Post

More News in this Category