South Korea’s Lotte Group said on Wednesday that it has been selected as the preferred candidate to buy Neulproon Medical Foundation that runs Bobath Memorial Hospital in Bundang, Gyeonggi. If the acquisition moves ahead as planned, the conglomerate is expected to become a new player in the medical business industry.

According to multiple industry sources, Hotel Lotte Co., a hotel unit and de facto holding company of Lotte Group, wrote down the highest price among three other contenders in a bid last week to take over Neulproon Medical Foundation. The conglomerate was notified by the Seoul Central District Court that it has been selected as the preferred candidate for the purchase, allowing it to go one step further in having a medical foundation and hospital as its unit.

An unnamed official from Hotel Lotte said that the conglomerate has been actively putting out efforts to realize the purchase to promote expert-based social contribution activities with the workforce and infrastructure already obtained by Bobath Memorial Hospital.

After receiving permission from United Kingdom-based Bobath Foundation to use the hospital name, Neulproon Medical Foundation opened Bobath Memorial Hospital in 2006. The hospital is considered one of Korea’s best when it comes to rehabilitation programs and facilities. The hospital, which is located on a 34,000 square meter site with a floor space of 24,300 square meters, has 550 sickbeds and it is recognized in the industry as one with expertise in senior care and rehabilitation through its neurorehabilitation, neurological disease, and lifestyle-related disease centers.

Neulproon Medical Foundation also runs a children’s hospital in Dongbaek, Yongin, which is also dedicated to rehabilitation programs for children with developmental disorder and cerebral palsy. Once the acquisition is confirmed, Hotel Lotte plans to increase investment particularly in this sector considering that children rehabilitation facilities are scarce in Korea despite high demand.

Bobath Medical Hospital was put up for sale after entering workout program in September 2015 due to financial problems. As of the end of last year, it had 101.3 billion won ($90.2 million) in assets, of which 84.2 billion won is debt. Industry sources note that once Lotte Group is named as final buyer, it will be pay off all of the hospital’s outstanding debt and inject fresh funds.

By Sohn Il-seon

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