Metro Pacific Hospital Holdings Inc. (MPHHI), the hospital holding company of Manuel Pangilinan-led Metro Pacific Investments Corp. (MPIC), has completed the acquisition of a 20-percent stake in the operator of Manila Doctors Hospital.
The company announced the agreement in November, but capped off the transaction on Monday.
The deal entails MPHHI acquiring 388,932 shares or 20-percent stake in Manila Medical Services Inc. (MMSI), the company that owns and operates Manila Doctors, from Metrobank Foundation Inc. for P368 million or P946.18 per share.
MPHHI said the purchase of stake in the Manila Doctors operator is beneficial, since it is a 300-bed tertiary hospital with annual revenues of P2 billion, part of which will flow to MPHHI’s revenue streams.
This is the 10th hospital investment of MPHHI, raising its portfolio to about 2,600 hospital beds nationwide.
Manila Doctors is in an expansion mode, where a new 18-storey building will be constructed to house new doctors’ clinics, patient rooms, outpatient diagnostic services, and additional parking facilities.
The new facility will add 500 beds into the hospital’s capacity and may be completed by end-2016.
MPHHI said two executives of the MPIC Group would sit as directors in MMSI’s board—Jose Ma. K Lim, president and chief executive officer of MPIC, and Augusto P. Palisoc Jr., president and CEO of MPHHI.
“We are glad to have Metro Pacific, being the largest hospital operator in the country, as our new partner in Manila Doctors Hospital and, likewise, welcome Messrs. Lim and Palisoc to the board of directors of MMSI,” Antonio S. Abacan Jr., chairman and acting president of MMSI, said in a statement.
“With this landmark collaboration, I am confident that our services to our patients will be further enhanced and made more within reach,” he added.
For his part, MPHHI President and CEO Augusto P. Palisoc Jr. said: “While we will try our best to contribute whatever we can to MMSI and MDH [Manila Doctors Hospital], we also look forward to learning from this esteemed medical institution.”
Apart from Manila Doctors, MPHHI has also an ongoing investment agreement to acquire 51 percent shareholdings in a provincial hospital, the Sacred Heart Hospital of Malolos in Bulacan.
Upon the completion of the investment in Sacred Heart Hospital, MPHHI will have a total of 11 hospitals with approximately 2,700 beds throughout the country.
Earlier, Palisoc said the group is “looking to invest in hospitals all over the country.”
Other than Manila Doctors and Sacred Heart hospitals, MPHHI has nine more hospital investments across the country: six in Metro Manila (Makati Medical Center, Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, Asian Hospital, De Los Santos Medical Center, and Manila Doctors Hospital) and five in the provinces (Davao Doctors Hospital, Riverside Medical Center in Bacolod, Central Luzon Doctors Hospital in Tarlac, West Metro Medical Center in Zamboanga, and Sacred Heart Hospital of Malolos in Bulacan).
Other than private hospitals, the company also has a mall-based diagnostic center, MegaClinic in SM MegaMall, and two healthcare colleges, Davao Doctors College and Riverside College in Bacolod.
MPHHI takes up three-percent share of the total profit and revenues of parent MPIC. In the first nine months of 2015, MPIC saw its net income rose by 28 percent to P8.2 billion from P6.5 billion a year ago, as consolidated revenues also rose by 8 percent to P27 billion from P25 billion last year.
Incorporated in 2006, MPIC holds Pangilinan’s investments in water utilities (Maynilad), toll roads (MPTC and MNTC), electricity distribution (Meralco) and healthcare services (MPHHI).