Buys parent firm’s stake in Southwestern University
Phinma Education Holdings Inc., the education arm of Phinma Corp., has bought its parent firm’s 70.47 percent stake in Southwestern University (SWU) to consolidate its education assets.
In a disclosure to the Philippine Stock Exchange, Phinma said its subsidiary completed the purchase of 21,331 shares of Cebu-based Southwestern at P119,165.09 per share for a total transaction value of P2.54 billion.
Phinma Education now holds a controlling stake of 70.47 percent in SWU, including its campus, the adjacent Sacred Heart Hospital, and a 240-hectare property in Cebu.
The group earlier said it plans to expand the Southwestern campus, while gain from the Sacred Heart Hospital and the potential sale of the property.
Phinma Education tapped two 10-year bank loans worth P2.3 billion – P1.4 billion from Rizal Commercial Banking Corp. and P900 million from China Banking Corp. – to fund most of the acquisition.
Phinma Education intends to set up two to three colleges in Southeast Asia, mainly looking at Myanmar, Vietnam and Indonesia, before its planned initial public offering (IPO) probably in 2017.