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ISSUER - JAKARTA. PT Lippo Karawaci Tbk (LPKR) plans to sell and transfer property in the form of a land area of 6,096 square meters with a planned transaction value of IDR 279.88 billion to the affiliated party PT Siloam International Hospitals Tbk (SILO).
Siloam International Hospitals' Corporate Secretary, Ratih Hadiwinoto, said that on February 12, 2024, Siloam International Hospitals and Lippo Karawaci conducted an affiliate transaction, in the form of a conditional sale and purchase agreement (PPJB).
"The total value of the entire planned transaction is IDR 279.88 billion (excluding VAT)," Ratih said in BEI's disclosure of information, Thursday (15/2).
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The total value of this planned transaction is less than 20% of the company's equity based on Siloam's latest financial report, so this transaction is not material as referred to in POJK No.17/2020.
"This planned transaction will positively impact Siloam International Hospitals and is in line with the company's business expansion plan," she said.
Henan Putihrai Securities analyst Bryan Soetopo believes this transaction will have a positive impact on LPKR to strengthen its balance sheet and improve its cash flow.
"The divestment of land to SILO also has a positive impact for SILO to continue operating and continue to expand its hospital network," Bryan told Kontan.co.id, Friday (16/2).
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According to him, this is in line with the business expansion carried out by SILO, that the company will continue to focus on improving and maintaining health services. Bryan believes Siloam International Hospitals will reap the benefits from the investment the company makes.
In addition, the Prabowo-Gibran pair is still leading in the quick count or temporary calculation. In their vision and mission, the Prabowo-Gibran pair said they would strengthen the health system in Indonesia, by providing more hospitals outside of Java Island.
Furthermore, the Prabowo-Gibran pair also said that Indonesia currently lacks about 140 thousand doctors and will continue to invest in developing professional and certified doctors in Indonesia.
"Therefore, we believe that the next president of Indonesia must improve health service infrastructure and human resources in this industry," Bryan said.
Kiwoom Securities Indonesia analyst Abdul Azis Setyo Wibowo has the same opinion, he said this transaction could have a positive impact on SILO's performance in the future.
"However, we tend to see SILO's performance still has the potential to grow well both in terms of top line and bottom line," Azis told Kontan.co.id, Friday (16/2).
Azis recommends neutral on SILO shares with a target price of IDR 2,500 per share. Meanwhile, Bryan recommends buying SILO shares with a target price of IDR 3,000 per share.
