Dec 22, 2012

BGH plans to open Myanmar hospital

Bangkok Dusit Medical Services Plc (BGH), Thailand's largest hospital group, will proceed with plans to set up a hospital in Myanmar next year to cash in on its expanding economy.

Chatree Duangnet, vice-president and chief executive, said the company hopes to see clearer investment regulations related to acquiring land, transfer of money and business ownership.

The company has undertaken a preliminary study of demand in Myanmar and wants to purchase land, but its plans have been delayed due to uncertainty about regulations.

"Patients from Myanmar coming for medical services at our hospitals in Thailand now rank second to those from the UAE. This means this country has strong potential," said Dr Chatree.

BGH has developed three hospitals in Phnom Penh with a combined 300 beds.

It is planning to increase its number of hospitals to 50 by 2015 from 31 now.

Kiatnakin Securities estimates BGH will have new five investment projects this year worth 2.2 billion baht.

Among these are projects in Phitsanulok and Khon Kaen provinces as well as Cambodia.

Within the next few years, BGH could raise capital of nearly 40 billion baht, partly through loans.

This will be enough for a planned greenfield project and mergers and acquisitions.

BGH's sales are projected to grow by 24% this year to 43.7 billion baht.

In 2015, sales are expected to reach 70-75 billion baht.

Shares of BGH closed yesterday on the Stock Exchange of Thailand at 114 baht, down 50 satang, in trade worth 188 million baht.