Singapore sovereign wealth fund GIC will invest P3.7 billion in the hospital business of Metro Pacific Investments Corp. (MPIC), a group led by businessman Manuel V. Pangilinan, in a deal expected to be finalized by middle of this year, a regulatory filing said.
GIC is a leading global investment firm with well over $100 billion in assets under management.
Metro Pacific Investments—the Philippine arm of Hong Kong-based First Pacific Co Ltd.—and GIC on Friday signed a definitive partnership agreement on Friday, a disclosure to the Philippine stock exchange said.
Under the agreement, GIC, through its affiliates, will invest P3.7 billion in a 14.4-percent stake in Neptune Stroika Holdings Inc. (NSHI), Metro Pacific Investment’s wholly owned subsidiary which is set to become the holding company for all of its hospital investments.
The entry of GIC into Neptune Stroika is expected to facilitate further expansion of the hospital group of MPIC.
GIC will advance P6.5 billion by way of an exchangeable bond that may be traded for an additional 25.5 percent stake in Neptune Stroika.
“Proceeds from the bond will be used by MPIC for continuing investments in roads, power and water,” the company told the local bourse.
The definitive agreement is subject to a few conditions and is expected to be completed sometime in the middle of 2014.
Neptune Stroika president and chief executive officer Augie Palisoc Jr. said the deal may help the company grow its business, not only in the hospital segment, but in other health-related fields as well, “both in the Philippines and possibly abroad.”
Established in 1981, GIC manages Singapore’s foreign reserves. In private equity, GIC invests through funds as well as directly in companies, partnering with fund managers and management teams to help world-class businesses achieve their objectives.
Meanwhile, the MPIC Hospital Group under NSHI comprises eight premier hospitals—Makati Medical Center, Asian Hospital, Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, De los Santos Medical Center, Davao Doctors Hospital, Riverside Medical Center in Bacolod, and Central Luzon Doctors Hospital in Tarlac.