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SPLASH Corp. announced on Monday that it is selling its stake in the
company that runs Medical City Medical Center in Ortigas to clean
out its portfolio of non-core businesses.
In a disclosure to the Philippine Stock
Exchange, the personal care products maker and distributor said its
board has authorized the sale of 50,000 shares or equivalent to one
board seat in Professional Services, Inc., owner of the Medical
City, for P200 million.
In a telephone interview, Noel P. Manucom,
Splash senior vice president and chief financial officer, told The
Manila Times that the stake in the hospital used to be an asset of
Splash Holdings, Inc., the holding firm of the listed company. The
stake was used to pay for the advances of about P220 million to
stockholders before Splash Corp.’s maiden share offering last
year.
“It is not a core business and we cannot use
it productively,” Manucom said.
He said the company has engaged financial
advisors for the said sale but there are no potential buyers to
date. The proceeds of the sale would go to Splash’s operations
such as brand building and research and development.
Earlier this year, Benpres Holdings Corp. also
divested its 18-percent stake in the hospital for P600 million to
help pay down its debts to an affiliate of Lombard Asia III, the
third Asian-centered private equity fund managed by Lombard
Investments Inc.
Since last year, Splash has been cleaning its
books of non-core businesses or assets by teaming up Vista Land and
Lifescapes, Inc. to develop an office-condominium hotel in its idle
property in Ortigas Center, Pasig City. Splash said this would be
put to better use than selling at a loss at current market prices.
Under the joint agreement, Vista Land subsidiary
CrownAsia will shell out P105 million for the project, which would
be payable in cash within 12 months. Splash said it would have an
estimated net gain of P36 million to P82 million.
-- Likha C. Cuevas-Miel
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