ATN Holdings gets SEC nod for capital hike to P1.2 B

ATN Holdings Inc., the listed holding firm of businessman Arsenio Ng, has secured the Securities and Exchange Commission’s nod to raise its capitalization to P1.2 billion from only P200 million.

Documents filed with the SEC show that ATN’s new capitalization will consist of 720 million Class A shares and 480 million Class B shares both at a par value of P1.

The capital hike was intended to raise fresh equity to fund the group’s working capital requirements and its real estate and healthcare businesses.

In line with its thrust to improve asset utilization, ATN established a surgical center called Managed Care in Summit One Tower to replace the mall-based Clinica Manila that has been embroiled in an ownership issue. At its present operating stage, the investment in Managed Care has reached P30 million, funded mainly by advances from ATN affiliates. 

The surgical center has been operating since June 2006 and new pieces of equipment have yet to be acquired to enable it to render medical services and beauty enhancement services but also to expand the variety of its product lines, principally involving plastic surgery, dental and ophthalmologic services and minor orthopedic services, ATN said. 

The surgical center consists of 14 surgery rooms, 16 consultation rooms and patient recovery cubicles. 

“Based on the experience in the mall-based clinic, which had only two surgery rooms, the surgical center should be able to generate revenues for ATN of more than five times the rental rates in the real estate industry. This revenue expectation will further improve dramatically when the surgical center is able to attain its long-term objective of becoming the leader in medical and beauty enhancement tourism in the Philippines,” ATN said.

Global medical tourism players estimate that there is a global backlog in the supply of services worth $20 billion. Countries competing for this market include India, Singapore, Malaysia, Thailand, Hong Kong, Saudi Arabia, Russia and the Philippines. 

The Philippines has a competitive advantage against its Asian neighbors in the compassionate care and communicating skills of nurses and caregivers. 

The medical and beauty enhancement tourism market in the Philippines in the next five years is very promising given that the country can be considered as the only English-speaking destination in Asia where clients from developed countries, mainly the US, can get more value for their money. 

Earlier reports said there was a buy-out of 100 US hospitals for $21 billion by private equity funds in anticipation of medical needs of baby boomers in the next five years.

“Given that medical costs in the USA are six to eight times more expensive than their Asian counterparts, ATN expects the same aging baby boomers to eventually come to get medical attention in the Philippines, especially when long-term medical rehabilitation becomes necessary for the 65 to 75 age bracket. With the company’s sound financial condition, ATN can ride the global mass-market trend in healthcare, TV satellite and digital data services investments,” ATN said.

In the first half of the year, ATN posted a net income of P1.47 million, more than five times the figure reported in the same period in 2007.  Revenues grew 58.82 percent to P7.02 million from P4.42 million. – Zinnia Dela Peña