Siloam plans Rp6.9 trillion buyout of 14 First REIT hospital firms

Labuan Bajo — PT Siloam International Hospitals Tbk (SILO) plans to acquire full ownership of 14 companies that hold hospital properties currently leased from First Real Estate Investment Trust (First REIT), in a two-stage transaction valued at about Rp6.9 trillion according to recent disclosures and local media reports.

The companies own hospitals that Siloam already operates in Indonesia under long-term lease arrangements with First REIT subsidiaries, according to Siloam’s information disclosure and coverage by domestic business media.

Local financial news outlets report that Siloam and its subsidiary PT Megapratama Karya Bersama will acquire 100% of the shares in the 14 target companies through a combination of conditional sale and purchase agreements and put option agreements tied to hospital assets in First REIT’s Indonesia portfolio.

Two-stage acquisition structure

The acquisition is structured in two stages.

In the first stage, Siloam and its subsidiary plan to acquire eight target companies under conditional share sale and purchase agreements signed on 1 April 2026, with an aggregate agreed property value of around IDR 5.1 trillion for the hospital assets, according to First REIT’s announcement on the Singapore Exchange and subsequent Indonesian media reports.

The second stage is linked to a series of put option agreements covering the remaining six hospital assets in First REIT’s Indonesia portfolio, with an aggregate agreed property value of about IDR 3.9 trillion if the options are exercised, subject to First REIT’s discretion and unitholder approval.

Indonesian business media citing Siloam’s disclosure report that the estimated transaction value for the share acquisitions is about Rp6.9 trillion, equivalent to roughly two-thirds of Siloam’s shareholder equity as of 31 March 2026.

Hospitals included and Labuan Bajo’s role

First REIT’s April 2026 announcement lists eight hospitals for the proposed divestments in the first stage: facilities in Sriwijaya, Purwakarta, Lippo Village, Kebon Jeruk, Bali, Kupang, Baubau and Manado.

The same announcement and subsequent Indonesian coverage indicate that the six hospital assets subject to put options in the second stage include properties associated with Siloam Hospitals Lippo Cikarang, Mochtar Riady Comprehensive Cancer Centre (MRCCC) Semanggi, Siloam Hospitals Makassar, Siloam Hospitals TB Simatupang, Siloam Hospitals Labuan Bajo and Siloam Hospitals Yogyakarta.

For Labuan Bajo, this means the local Siloam hospital is grouped in the second-stage portfolio rather than in the initial divestment package.

Rationale and financial impact

According to Siloam’s disclosure as reported by Indonesian financial media, the move is intended to shift the group’s position at the 14 sites from tenant to direct owner of the property-holding companies, reducing long-term rental expenses and giving management greater control over asset upgrades, capacity expansion and capital planning.

Media reports based on the same disclosure state that the total estimated value of the transaction represents a material transaction under Indonesian capital market rules, triggering the requirement for approval at an extraordinary general meeting of shareholders.

Coverage of the disclosure also notes that the plan involves significant bank financing, which would substantially increase both Siloam’s total assets and liabilities on a pro forma basis once the acquisition and associated borrowing are completed.

Valuation and fairness opinion

Indonesian business outlets report that independent appraiser KJPP Budi, Edy, Saptono dan Rekan (BEST) prepared a fairness opinion on the planned acquisition.

According to these reports, the appraiser assessed the fair market value of 100% of the shares in the 14 target companies and concluded that the proposed transaction value is within the allowable range above the appraised fair value, and therefore considered fair under applicable regulations.

Next steps

As of the latest public reports, the acquisition plan remains subject to shareholder and, on the First REIT side, unitholder approvals, as well as the exercise of the put options for the second-stage assets.

No detailed timetable for completion of the second stage, including the Labuan Bajo hospital property, has been reported in the available disclosures and media coverage, and the final financing structure remains to be confirmed.

Sources

• KabarBursa.com – "Siloam Hospitals (SILO) Rogoh Rp6,9 Triliun Borong 14 Rumah Sakit, Begini Detailnya"
• Bisnis.com – "Siloam (SILO) Siapkan Rp6,91 Triliun Akuisisi 14 Rumah Sakit"
• Singapore Exchange – First REIT press release "FIRST REIT PROGRESSES STRATEGIC REVIEW TO DELIVER LONG-TERM VALUE"
• Kontan – "Segera Akuisisi 14 Properti RS, Ini Profil Emiten SILO dan Kinerja Terbarunya"
• PintarSaham.id – "SILO Siapkan Akuisisi Aset Rp 9 Triliun dari Entitas First REIT"
• Jakarta Globe – "Siloam to Acquire Rp 6.9 T Hospital Properties in Shift From Leasing"