Friday, 22 June 2018 | 02:40 WIB

Kimia Farma Explores Acquisition of Pharmaceutical and Hospital Companies

PT Kimia Farma.

JAKARTA, NNC - PT Kimia Farma (Persero) Tbk (IDX:KAEF) is exploring plans to acquire several companies to support its business development. Funds for investment are obtained from part of capital expenditure (capex) amounting to IDR3.2 trillion.

Finance Director of Kimia Farma I.G.N Suharta Wijaya revealed the company is targeting some companies engaged in the health business. 

"Currently still in the stage of due diligence. According to plan we will acquire companies engaged in pharmaceutical sector, medical equipment, hospital and also cosmetics," he said to reporters in Jakarta on Monday (3/12/2018).

He explained it is looking for a hospital that has a network to be acquired. As for pharmaceutical companies, there are currently 2 to 3 companies that are in talks.

Meanwhile, the total capex requirement of IDR3.2 trillion is financed from internal cash amounting to 30 percent and the rest is expected from external sources. The Company has secured some of the external funds for capex of IDR600 billion from the medium term Notes (MTN) offering.

Suharta also acknowledged that the company is also exploring syndicated loans from several domestic banks to cover the company's investment needs this year. "There are already several banks that we are exploring and ready to provide loans," he added.