Metro Pacific Hospital defers IPO plan, sells shares to KKR, GIC instead
MANILA, Philippines — Metro Pacific Investments Corporation announced Tuesday it would postpone the planned stock market debut of its hospital unit, Metro Pacific Hospital, and would instead sign an investment deal with private equity firm KKR & Co. and Singapore sovereign wealth fund GIC Pte.
In a statement, Metro Pacific said it would raise P35.3 billion in fresh capital through the sale of shares to KKR and GIC, which will restructure its current investment in Metro Pacific Hospitals and will re-invest alongside KKR.
Under the agreement, KKR and GIC will pay P5.2 billion ($100 million) worth of shares in Metro Pacific’s hospital venture.
The KKR-led consortium will also buy P30.1 billion ($580 million) of exchangeable bonds, which can be converted to 239,932,962 common shares in Metro Pacific Hospitals in the next 10 years.
Metro Pacific expects to complete the transaction by the end of 2019.
“Its cash infusion into Metro Pacific Hospitals will enable us to further grow our network, on our way to our new target of 5,000 beds and 30 hospitals before 2030,” said Augusto Palisoc Jr., president and CEO of the healthcare group.
Metro Pacific Hospital operates 14 hospitals with more than 3,200 beds across the country, including Makati Medical Center and Cardinal Santos Medical Center.
Last month, the hospital group filed an application for its initial public offering in a bid to raise up to P83.3 billion and as part of Metro Pacific’s efforts to sell down assets.
Metro Pacific disclosed last May plans to unload a portion of its 85.6% stake in the hospital business to reduce debt, as its aggressive expansion over the years have caused their liabilities to grow substantially.
“After much consideration we believe we have found the best way forward for Metro Pacific Hospitals and MPIC with this new partnership with KKR,” Metro Pacific President and CEO Jose Ma. Lim said.
“While we have decided for now to postpone the initial public offering for Metro Pacific Hospitals, I thank all the people involved in helping with this effort,” Lim added. — with reports from The STAR and BusinessWorld
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