PHINMA Education Network (PEN), the education subsidiary of listed firm Phinma Corp., is strengthening its foothold in the middle income education market by purchasing 10.62-percent more interest in Southwestern University (SWU).
In a disclosure to the Philippine Stock Exchange, the education-related firm said it paid the P367.8-million transaction on Tuesday, covering 3,214 shares of SWU at P114,436.22 apiece. The purchase was funded by a P368 million loan.
The additional stake is on top of the 56.83-percent interests of PEN in SWU, which raised its shareholdings to a 67.45-percent controlling stake.
“With the addition of SWU, the enrollment of Phinma Education’s schools will grow by 10, 000 students to 47,000 students and will consequently increase revenues and bottom line,” the company said.
“The Cebu location likewise gives Phinma presence in one of the country’s major education centers, expanding its physical reach and influence. The investment also represents Phinma’s entry into the mid-income education market,” it added.
“The transition from a family-run company to becoming part of a national conglomerate will help protect the legacy of the family and ensure SWU’s future by becoming a professionally-run institution with the goals of improving operational efficiencies, achieving economies of scale, and further improving the quality of education,” Phinma noted.
SWU was founded by the Aznar family, incorporated in 1957, and is under the supervision of the Commission on Higher Education. Aside from the schools network, SWU also operates the Sacred Heart Hospital.
Phinma is ramping up education unit PEN by infusing P2 billion in preparation for a planned stock market debut in 2017.
Under its education arm, Phinma operates Pamantasan ng Araullo (Araullo University) Inc., Cagayan de Oro College Inc., University of Pangasinan, and University of Iloilo. KRISTYN NIKA M. LAZO