MPIC to acquire 51% of De Los Santos hospital

MANILA, Philippines - Metro Pacific Investments Corp. has inked a deal to acquire 51 percent of the 150-bed De Los Santos Medical Center (DLSMC) in Quezon City for P250 million.

In a disclosure to the Philippine Stock Exchange, MPIC said it signed on Nov. 29 an agreement with all shareholders of the De Los Santos General Hospital Inc., owner and operator of the DLSMC, allowing it to participate in the full-service of the hospital’s capital-raising exercise.

MPIC’s investment will be used to fund the renovation and expansion of the hospital facilities, the upgrade of operating rooms, and the purchase of new medical equipment.  New patient rooms, doctors’ clinics and parking slots will be developed to meet the growing needs of patients/customers.

DLSMC will be the seventh hospital in MPIC’s growing network of healthcare facilities across the country. It will be the fifth hospital controlled by MPIC in Metro Manila after Makati Medical Center, Cardinal Santos Medical Center in San Juan, Asian Hospital in Alabang and the Our Lady of Lourdes Hospital in Sta. Mesa. Manila.

MPIC has also invested in Riverside Medical Center in Bacolod and Davao Doctors Hospital in Mindanao.

With this acquisition, the MPIC Hospital Group will have a total bed capacity of around 2,000.

Located along E. Rodriguez Sr. Boulevard, DLSMC is a tertiary

teaching and training hospital founded in 1973 by the late Dr. Jose V. De Los Santos, Sr., considered the father of Philippine Orthopedics.

DLSGHI also has an affiliate, De Los Santos–STI Megaclinic, Inc. (Megaclinic), a 2,000 square-meter ambulatory and diagnostic center located in SM Megamall. De los Santos–STI Megaclinic, Inc. is considered to be the largest in the country in this category.

Dr. Jose V. De Los Santos, Jr., president and chief executive officer of DLSGHI and representing the De Los Santos family, said: “As our different family members pursue other varied activities, we are happy to bring in as partners the largest private hospital chain in the country as we know this can only be good for De Los Santos Medical Center and its patients.”

“We believe that MPIC, with its experience in running hospitals, will be a good partner in DLSGHI. This will provide DLSMC with further hospital expertise, while we, at STI, will be able to focus on De Los Santos-STI College and our other educational institutions,” said lawyer Monico Jacob, president of Systems Technology Institute (STI).

STI has an investment in DLSMC.

“We are thankful for the trust and confidence shown to us by the De Los Santos family and STI in welcoming our investment in DLSMC. Together, we hope we will be able to contribute in perpetuating the legacy of Dr. Jose V. De Los Santos, Sr. by elevating DLSMC to new heights of quality healthcare, catering to the patients of Quezon City, primarily, and other neighboring areas. We are also excited about Megaclinic, our first involvement in an independent mall-based diagnostic center.” said Augie Palisoc, Jr., MPIC executive director and president and chief executive officer of the MPIC Hospital Group.

Subject to satisfaction of certain conditions precedent to closing, the transaction is expected to completed by the first quarter of 2013.

“There are still a number of conditions that need to be fulfilled, but assuming these are done, we hope to start making the investments by the first quarter of 2013.” Palisoc said.

Aggregate core net earnings of the Hospital Group in the first nine months amounted to P537 million, up 31 percent from comparable nine months of 2012, reflecting the benefit of investments made in the Asian Hospital and an increased shareholding in Cardinal Santos from November last year.