MANILA, Philippines - Metro Pacific Investments Corp. (MPIC) wants to acquire an additional 181,226 new shares at a price of P208.4 million in Medical Doctors Inc. (MDI) which owns and operates Makati Medical Center (MMC), raising its stake in MDI from 32.93 percent to 35.35 percent.
According to MPIC, it is participating in the stock rights issue of MDI and is subscribing to and acquiring all the shares corresponding to its stock rights entitlement and additionally offering to subscribe to any shares that will not be subscribed by the other shareholders of MDI.
MDI is offering for subscription a total of 181,226 new shares at the price of P1,150 per share or the total issue price of P208,409,900.
This additional investment was approved by the MPIC board during its meeting last Wednesday.
MPIC currently owns 32.93 percent of MDI. If the former will be able to acquire all the additional new shares being issued by MDI, this will raise MPIC’s stake in MDI to 36.35 percent.
Based on MPIC’s 32.93 percent ownership in MDI, it is entitled to subscribe to 58,924 new shares for a price of P67 million. However, MPIC officials said they are hoping to acquire all the new shares being issued by MDI of 181,226 new shares.
MMC is a 420-bed tertiary hospital in Makati City. According to company officials, the hospital is now on its third year of sustained profitability, resulting in increased investible funds to be plowed back to the hospital to enhance its medical capability, and improve credit ratings translating to a clean bill of health.
MMC now boasts of a new building that houses diagnostic services and centers of excellence, all part of an ambitious master plan to provide total patient care in the most conducive environment. According to the hospital management, the new building is only the first step in MMC’s vision of a complete hospital in every sense, one that has factored in current and emerging trends in medical treatment, medical technology and delivery.
They added that 2009 will be focused primarily on completing the hospital transformation masterplan.
Around P2 billion in capital expenditures have been invested in a Facilities and Improvements Program (FIP),the first phase of which was the construction and equipping of the new annex building which was opened for soft launch in Dec. 2008. More capital expenditures are programmed to fully integrate and upgrade the facilities, equipment, and amenities to the existing structures, officials said.
It was in 2008 when MPIC increased its shareholding in MDI from 7.5 percent to 32.4 percent, bringing with it corporate management skills to sustain the hospital’s competitiveness in today’s medical industry where patients have several choices, they added.
MPIC reported a core net income of P716 million for the first six months of 2009, as against the restated core profit of P15 million for the same period in 2008.
Reported net income, which included net non-recurring gains, increased to P1.7 billion, against a restated bottomline of P339 million last year.
The hospital group’s net income for the period totaled P243 million with contribution to MPIC of P76 million.
“Optimal overall performance, internal controls and system efficiencies have sustained the growth of Maynilad, Metro Pacific Tollways and the hospital group for the 1st half of 2009. This demonstrates that even in a challenging economic environment, the group’s strong operating income stream, proactive management and prudent measures will continue to exceed expectations and contribute higher margins to MPIC” said Jose Ma. K. Lim, president and chief executive officer.
MPIC also owns Colinas Verdes Managers Corp. (CVHMC), operator of Cardinal Santos Medical Center. The Roman Catholic Archbishop of Manila awarded the 20-year contract to operate the Cardinal Santos hospital to CVHMC last March 1.
Under such contract, CVHMC is obligated to pay rent for the lease of the land, building and existing equipment of CSMC and is committed to invest a minimum of P750 million in the first 10 years, of which P250 million will be spent within the first three years to repair assets and expand hospital services.