Investors wrap up Metro Pacific deal

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    Metro Pacific Investments Corp. (MPIC) said global investment firm KKR and GIC, Singapore’s sovereign wealth fund, have fully remitted their investments in unit Metro Pacific Hospital Holdings Inc.

    “These were made through a series of transactions in common shares in Metro Pacific Hospitals and in mandatorily exchangeable bonds issued by MPIC,” the company said.

    Proceeds from the sale will be used to support Metro Pacific Hospitals’ potential investments in additional hospitals and new healthcare businesses, as well as MPIC’s existing subsidiaries, associates and joint ventures.

    “We welcome KKR and GIC as investors who not only have established track records of helping healthcare companies to meet their growth ambitions, but also have full confidence in Metro Pacific Hospitals’ potential to provide even more critical healthcare services to patients across the Philippines. Today marks the start of a new and exciting chapter for Metro Pacific Hospitals,” said Manuel Pangilinan, MPIC chairman.

    In the agreement, the KKR-led consortium will subscribe to P5.2 billion ($100 million) worth of new common shares in Metro Pacific Hospital, equivalent to 6.25 percent of the company.

    The KKR-led consortium will also invest another a P30.1 billion ($ 580.0 million) in a mandatorily exchangeable bond that will be issued by MPIC this time.

    Metro Pacific Hospitals is the operator of the largest private hospitals and healthcare network in the Philippines in terms of authorized bed capacity and revenues, with interests in 14 hospitals and approximately 3,200 beds across the country.

    “The company is focused on delivering high-quality healthcare solutions to patients at a time when more Filipinos are seeking premium medical services, driven by rising per capita incomes and rapid urbanization,” MPIC said in a statement.

    Augusto Palisoc Jr., Metro Pacific Hospitals president, said the Philippine healthcare industry is poised for tremendous growth given the increasing demand for hospitals, clinics and facilities that provide premium medical services.

    “With this new investment, coupled with the expertise that KKR and GIC bring to Metro Pacific Hospitals, we will be in an even stronger position to meet patients’ needs and capture new opportunities through organic expansion, acquisitions and investments, and the adoption of new technologies,” added Palisoc.

    KKR made its investment from its flagship Asian Fund III.

    The KKR-GIC investment suspended the planned public listing of the MPIC hospital unit.

    Metro Pacific Hospital early this year filed an application for an P83.3-billion initial public offering as it looks to offer to the public 417.09 million shares at up to P182 apiece.