(Bloomberg) -- Indonesian property developer PT Lippo Karawaci is considering buying CVC Capital Partners’s stake in PT Siloam International Hospitals, according to people familiar with the matter.
Lippo Karawaci, which owns about 58% in the Jakarta-listed company, is in talks with the private equity firm for its 26% stake, the people said, asking not to be identified as the information isn’t public. The Indonesian developer could raise capital for the potential transaction but hasn’t made any final decision, one of the people said.
Deliberations are ongoing and there could be other potential buyers for CVC’s stake in Siloam Hospitals, the people said. A representative for CVC declined to comment, while a representative for Lippo Karawaci didn’t immediately respond to requests for comment.
Lippo Group is exploring opportunities to build hospitals or education centers in Indonesia’s new capital city, John Riady, Chief Executive Officer of Lippo Karawaci and President Commissioner of Siloam Hospitals, said in a Bloomberg News interview in May. The conglomerate is seeking new projects to ride out the pandemic slump.
Siloam operates 40 hospitals with four units dedicated to Covid-19 patients and has more than 13,000 employees, according to its annual report. During the pandemic, Siloam Hospitals saw an increase in Indonesian patients who may otherwise have traveled to neighboring countries such as Singapore and Malaysia for treatment of cancer or other diseases, but who were unable to because of Covid-related restrictions. The company’s net income was 674 billion rupiah ($45 million) in 2021, a 480% increase from a year earlier.
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