Bangkok Dusit Medical Services Plc, the operator of the Bangkok General Hospital Group, has invested Bt870 million to acquire a 15.76 per cent stake in Prasit Patana Plc, the operator of the three Phyathai hospitals, from Bank of Ayudhya.

In a filing to the Stock Exchange of Thailand yesterday, Bangkok Dusit's board approved the investment to acquire 273.03 million shares from the bank. The payment was completed yesterday.

Bangkok Dusit owns 13 hospitals around the country, including BNH Hospital - formerly the Bangkok Nursing Home - and two branches of Samitivej Hospital. It has also operated hospitals in Cambodia, Bangladesh, Vietnam, Burma and Saudi Arabia, to be followed by Oman and the United Arab Emirates.

Bangkok Dusit always acquires the controlling stake in a hospital in which it invests.

Prasit Patana chairman Vichai Thongtang, who directly and indirectly holds more than a 40-per-cent stake in the company, said that he did not consider the development to be a move to take control by Bangkok Dusit.

He said he believed the move would strengthen the business.

"I'm not concerned about this transaction, as my group holds more than a 40-per-cent stake in Prasit Patana. I think Bangkok Dusit's investment may come from the fact that it has seen the potential growth of the Phyathai Hospital group after completing a rehabilitation plan," said Wichai.

Linda Chokechuchai, assistant director of Asset Plus Securities' strategy department, said that the transaction would probably boost revenues for Prasit Patana and possibly help its stock price to break the resistance price of Bt31.

Separately, the Bangkok Dusit board yesterday also voted to establish a new subsidiary company, Asia International Healthcare Co Ltd, for the purpose of overseas investment. The registered capital of the new company will be Bt5 million divided into 500,000 ordinary shares at the par value of Bt10 each.

The board also granted a Bt35-million short-term loan to its subsidiary, Bangkok Helicopter Services Co Ltd, for the company's working capital.

According to its balance sheet reported to the SET in June, Prasit Patana had Bt1.73 billion paid-up registered capital, allocated into 1.73 billion common shares with Bt1 par value apiece.

The top five major shareholders were Wichai (38.71 per cent), the Bangkok of Ayudhya, Thailand Securities Depository Co Ltd (15.18 per cent), Sukhumvit Asset Management (8.5 per cent) and Bangkok Bank (8.45 per cent).