METRO Pacific Hospital Holdings Inc. (MPHHI), a subsidiary of Pangilinan-led infrastructure conglomerate Metro Pacific Investments Corp. (MPIC), is proceeding to buyout Davao Doctors Hospital (DDH) in line with its expansion strategies.
MPHHI will acquire the remaining 587,154 shares of DDH through a tender offer that will run from October 1 to November 19, MPIC said in a disclosure to the Philippine Stock Exchange.
Depending on total tendered shares, prices will be determined as follows: P2,300 per share for up to 50 percent of the tendered shares, P2,600 each for 50 percent to 66.66 percent, or P2,750 apiece for over 66.67 percent.
Augusto Palisoc Jr., president and CEO of MPHHI, said in a text message that Davao Doctors will boost the company’s revenues.
“We want to be able to consolidate DDH financials in the accounts of our new hospital holding company, MPHHI. We now have nine hospitals in our network,” Palisoc said.
Currently, the hospital group owns 313,655 shares or 34.82 percent interests in Davao Doctors.
SyCip Salazar Hernandez and Gatmaitan Law Offices will serve as the agent for the tender offer.
Asked if the company will further venture into hospital acquisitions in the provinces, Palisoc said: “Yes, we’re looking to invest in hospitals all over the country.”
MPHHI accounts for 3 percent of the total profit and revenue of parent MPIC. In the first half of 2015, MPIC saw a 31-percent leap in net income at P5.56 billion from P4.24 billion a year earlier. Core net income increased by 27 percent to P5.88 billion from P4.64 billion.
MPIC budgeted P58.6 billion for capital expenditures (capex) this year, revising the P53.7-billion capex announced last year. The 2015 capex is 66 percent higher than the P35 billion last year, upped mainly on because of the LRT Line 1 extension project.