JAKARTA. PT Lippo Karawaci Tbk (LPKR) has participated in a tender offer of shares of PT Siloam Hospitals Tbk (SILO), which involves the divestment of some of its stock ownership, equal to 18.57% of SILO’s shares.

This corporate action makes LPKR’s portion in SILO drops to 29.09%. Prior to this, LPKR claimed control over 38.66% of SILO.

Marlo Budiman, President Director of LPKR, said that this corporate action is meant to lower the company’s debt, as well as focusing its business solely on real estate sector.

From this divestment, LPKR collects fresh funds of IDR 6.9 trillion. Approximately IDR 3.9 trillion will be used to pay back loans, while the remainder will be utilised for investment, project completion, and working capital.

“From this transaction, LPKR’s net debt is projected to shrink o IDR 4.3 trilion,” said Budiman in the official disclosure.

Today (19/9), SILO’s shares went up 100 points, or 3.37%, to IDR 3,070 per share at morning session. Since the beginning of this year, its stock price has climbed 910 points or 42.13%. (KR/ZH)