Listed Metro Pacific Investments Corp. (MPIC) has signed a P35.3-billion investment agreement with global investment firm KKR & Co. and Singapore-based GIC Private Ltd. to boost the operations of its hospital unit.
In a disclosure on Tuesday, MPIC said that the KKR-led consortium would be subscribing to 41.37 million common shares, representing a 6.25-precent stake, for a total of P5.2 billion.
“Proceeds from the sale of shares in the company are expected to be used to support Metro Pacific Hospitals’ potential investments in additional hospitals and new healthcare businesses,” the listed firm said.
Other inflow could also be allocated to the firm’s other subsidiaries, associates and joint ventures.
The consortium would also be investing P30.1 billion in mandatorily exchangeable bond in MPIC. Proceeds are allocated for payment of bank borrowings.
Said bonds could be exchanged with 239.93 million common shares of Metro Pacific Hospitals “on the sooner of 10 years or an initial public offering (IPO).”
In September, Metro Pacific Hospital filed for an P83.33-billion IPO, with a primary offer of 35.82 million common shares and secondary offer of 381.27 million common shares, with an overallotment option of up to 40.77 million common shares. Offer period is scheduled from November 18 to 22.
All these transactions are expected to be completed before the year ends.
“I am delighted that we are able to announce this new partnership in the healthcare sector. KKR’s record of assisting transformational businesses is well known, and our plans for the future of Metro Pacific Hospitals are ambitious,” MPIC Chairman Manuel Pangilinan said.
Metro Pacific Hospitals President Augusto Palisoc Jr. welcomed KKR as a stakeholder, adding that the investment would allow the firm to have 30 hospitals in its portfolio by 2030.
“Today’s announcement is not only about bringing operational value and capital support to this business — it’s about supporting the impressive doctors, nurses and healthcare practitioners at Metro Pacific Hospitals who help millions of patients across the Philippines,” Ashish Shastry, co-head of Asia Pacific Private Equity and head of Southeast Asia at KKR, added.
MPIC shares were down 16 centavos or 3.16 percent to end at P4.90 each on Tuesday.