Jakarta. Siloam International Hospitals (IDX: SILO) plans to acquire 14 companies that own hospital properties worth a combined Rp 6.9 trillion ($386.46 million), as the healthcare operator seeks to reduce rental costs and gain greater control over assets it already uses to run its hospitals.

The acquisition will be carried out by SILO and its subsidiary Megapratama Karya Bersama from non-affiliated parties. The properties have been operated by SILO under long-term lease arrangements with entities affiliated with First Real Estate Investment Trust (First REIT), according to the company's disclosure to the Indonesia Stock Exchange (IDX).

The planned transaction marks a shift in SILO's asset strategy from leasing hospital properties toward owning them. SILO's financial statements show that it recorded Rp 307.1 billion in cash payments for lease liabilities during the first half of 2026, up from Rp 277.5 billion a year earlier. Its lease liabilities stood at Rp 369.2 billion as of June 30, 2026, with Rp 365.6 billion related to building leases.

SILO also recorded Rp 264.1 billion in variable rental expenses during the six months through June, up from Rp 247.3 billion in the same period last year. The expense represents variable rental costs that are not included in the measurement of lease liabilities.

The acquisition will be conducted in two stages. The first stage covers the acquisition of 100% of eight companies under agreements signed on April 1, 2026. The second stage covers six additional companies, but the acquisitions will only proceed if the relevant put options are exercised by the option holders.

The planned transaction is intended to reduce rental expenses while giving SILO greater operational and financial flexibility.

To finance the transaction, SILO has secured a syndicated loan facility of up to Rp 14.5 trillion from a group of banks, including Bank Negara Indonesia (BBNI), Bank CIMB Niaga (BNGA), Bank Central Asia (BBCA), Bank DBS Indonesia, MUFG Bank Ltd.'s Jakarta branch and The Hongkong and Shanghai Banking Corporation Ltd.'s Singapore branch.

SILO reported revenue of Rp 6.76 trillion in the first half of 2026, while net profit reached Rp 609.5 billion. Its total assets stood at around Rp 15.8 trillion as of June 30.

The proposed acquisition will require approval from SILO shareholders at an extraordinary general meeting scheduled for Sept. 22, 2026.

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