Seokgyeong Medical Foundation Completes Acquisition of Ansan Hando Hospital

[Asia Economy Reporter Lim Jeong-su] Seokgyeong Medical Foundation, which operates Central Hospital located in Siheung, Gyeonggi Province, has completed the acquisition of Daea Medical Foundation, the operating foundation of Hando Hospital, the largest general hospital in Ansan, Gyeonggi Province. Seokgyeong Medical Foundation raised over 50 billion KRW in capital markets to pay the acquisition price for Daea Medical Foundation.

According to the investment banking (IB) industry on the 4th, Seokgyeong Medical Foundation secured funds for the acquisition of Daea Medical Foundation and completed the final payment. It is known that they paid the acquisition price by receiving a senior loan exceeding 40 billion KRW and a subordinated loan of around 10 billion KRW, under the lead management of Hi Investment & Securities.

Seokgyeong Medical Foundation participated in the public bidding for Daea Medical Foundation conducted by the court last March and was selected as the preferred negotiation partner. After being selected as the preferred partner, they succeeded in the final acquisition through about six months of due diligence and fundraising.

According to related industries, Hando Hospital in Ansan, operated by Daea Medical Foundation, is a general hospital that opened in 2006. It has 450 inpatient beds and 11 specialized centers. It is one of only two regional emergency medical centers in cooperation with Korea University Ansan Hospital and Ansan City.

Hando Hospital is known to have incurred somewhat excessive external borrowing over the past few years to expand its business. However, after successive business failures, it faced management difficulties and applied for rehabilitation proceedings (court receivership) last year.

This content was produced with the assistance of AI translation services.