Siloam acquires 14 hospital assets worth Rp6.9 trillion to transition to ownership model
Siloam International Hospitals is undertaking the acquisition of 14 hospital properties spread across various regions, transitioning them from leased assets to owned assets with a total value of approximately Rp6.9 trillion.
“The acquisition marks a significant milestone for the company to capture a larger portion of value from operations, gain broader flexibility over asset and clinical strategies, and build a stronger foundation for the hospital’s long-term growth,” said Siloam President Director, David Utama, following the Extraordinary General Meeting of Shareholders (EGMS) at the Mochtar Riady Institute for Nanotechnology, Karawaci, Tangerang, on Tuesday.
In addition to the acquisition, another agenda of the EGMS was to discuss providing guarantees on certain company assets in connection with syndicated loan facilities of up to Rp14.5 trillion to support the transactions.
David added that the transaction is expected to provide the company with greater control over its asset and clinical strategies, allowing the company to capture more value from its hospital operations and support sustainable long-term growth.
The transaction will be executed in two stages: the acquisition of eight hospital properties based on conditional share purchase agreements, with final completion targeted for October 2026, followed by the potential acquisition of six additional properties based on agreed option-to-sell arrangements.
Although the transaction is expected to increase financing costs in the short term, David noted that management anticipates the deal will contribute positively to the company’s long-term financial performance through increased operational cash flow and greater ownership of strategic hospital assets. The transaction is also supported by a fairness opinion issued by an independent valuer.
“Ownership of these properties will provide us with greater flexibility to invest in hospital facilities, expand capacity, and enhance clinical services in accordance with evolving patient needs,” he said.
The 14 hospitals involved in the asset acquisition include Siloam Hospitals Sriwijaya Palembang, Siloam Hospitals Purwakarta, Siloam Hospitals Lippo Village, Siloam Hospitals Kebon Jeruk, Siloam Hospitals Bali, Siloam Hospitals Buton/Baubau, Siloam Hospitals Kupang, Siloam Hospitals Manado, Siloam Hospitals Labuan Bajo, Siloam Hospitals TB Simatupang, Siloam Hospitals Makassar, Mochtar Riady Comprehensive Cancer Centre Siloam Semanggi (MRCCC Siloam Semanggi), Siloam Hospitals Lippo Cikarang, and Siloam Hospitals Yogyakarta.