Conglomerate Metro Pacific Investments Corp. (MPIC) on Tuesday said it raised P35.3 billion in investments for its hospital unit Metro Pacific Hospital Holdings Inc. (MPHHI) via agreements with a consortium composed of Singaporean sovereign wealth fund GIC and led by global investment firm KKR.
In a disclosure to the stock exchange, listed MPIC stated it will postpone the initial public offering (IPO) of MPHHI, where it had planned to raise P83 billion by selling a total of 457.86 million primary and secondary shares for the hospital group’s expansion, in favor of the deal with the foreign investors.
MPIC said it has signed “certain definitive agreements” with the consortium, under which KKR and GIC’s affiliate will subscribe to P5.2 million worth of 41,366,178 new common shares in MPHHI, or 6.25 percent of the company’s aggregate value.
GIC is set to reconstruct its existing investment in MPHI and re-invest with KKR.
The consortium will also invest in a P30.1-billion mandatorily exchangeable bond issued by parent firm MPIC, which will allow the consortium to exchange the bond for 239.93 million shares in MPHHI “on the sooner of 10 years or an IPO, which may be considered after further development of the business.”
The proceeds from the fund-raising will be utilized to support MPHHI’s potential investments in new hospitals and healthcare businesses, as well as grow MPIC’s existing subsidiaries, associates and joint ventures. MPIC will use the proceeds from the issuance to reduce bank debts.
“I am delighted that we are able to announce this new partnership in the healthcare sector, which is an extension of our successful relationship with KKR with its investment in Voyager Innovations, a digital technology company of MPIC’s sister company PLDT,” MPIC and MPHHI chairman Manuel Pangilinan was quoted as saying.