MANILA, Philippines - Metro Pacific Hospital Holdings Inc. (MPHHI), the healthcare unit of industrial conglomerate Metro Pacific Investments Corp. (MPIC), is seeking a majority stake in Davao Doctors Hospital Inc. (DDH).
The Manuel V. Pangilinan-led hospital firm commenced yesterday a general offer to acquire the remaining shares of stock in the Davao-based hospital through law firm SyCip Salazar Hernandez and Gatmaitan Law Offices.
The hospital subsidiary currently owns 313,655 shares or 34.82 percent of the outstanding capital stock of DDH and wants to acquire the remaining 587,154 shares of stock in the medical institution for roughly P1.614 billion.
MPHHI acquired its stake in DDH for P500 million in 2009 and has since poured in P400 millionin 2009 in investments to improve the facility.
MPHHI is offering a higher price per share if it would be able to acquire a higher number of shares. It laid down three conditions as basis for the offer price.
In its offer, MPHHI said if as a result of the tender, it will acquire less than 136,747 DDH shares, the offer price shall be P2,300 per share.
On the other hand, if as a result of the tender MPHHI acquires at least 136,747 DDH shares but less than 286,881 shares, the offer price shall be P2,600 per share.
Finally, MPHHI said if it acquires at least 286,881 DDH shares, the purchase price shall be P2,750 per share.
The offer period will be until Nov. 19, MPHHI said.
As of end-June, the Metro Pacific Group has nine hospitals with a total bed count of 2,245: Makati Medical Center, Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, Asian Hospital & Medical Center and De Los Santos Medical Center in Metro Manila; Central Luzon Doctors’ Hospital in Tarlac; Riverside Medical Center in the Visayas; and Davao Doctors Hospital and WMMC in Mindanao; one mall- based diagnostic and ambulatory care center located in SM Megamall; and two healthcare colleges – Riverside College Inc. in Visayas and Davao Doctors College in Mindanao.
The hospital group’s first half net income this year rose 23 percent to P565 million.