Phinma consolidates investments

MANILA, Philippines — Phinma Corp. is consolidating its investments to further unlock value and drive synergies across the group.

The company’s board of directors approved a plan to purchase common shares owned by its parent, Phinma Inc., in the group’s operating companies for P2.3 billion.

This will lead to the consolidation of the group’s strategic business units under Phinma Corp. while providing a vehicle to expand these core and emerging businesses, Phinma said in a regulatory filing.

Phinma chairman and CEO Ramon del Rosario Jr. said consolidating investments into 1Phinma would bolster the group’s robust growth trajectory.

“As we continue to grow, Phinma Corp. will capitalize on our distinctive advantages and our drive to provide the essentials of a dignified life for Filipinos. Our core values and our mission are the guiding principles behind our portfolio decisions and we believe that moving forward as 1Phinma will enable us to positively impact more communities and provide better returns to all of our stakeholders,” Del Rosario said.

Phinma said this would expand the company’s exposure to these high-growth sectors, improve the conglomerate’s diversification, and provide a more streamlined avenue to leverage synergies across the group going forward.

The stakes to be acquired include an 8.03 percent stake in Phinma Education Holdings Inc.; a 36.71 percent stake in Phinma Property Holdings Corp.; a 63.77 percent stake in Phinma Hospitality Inc.; a 51 percent stake in Phinma Microtel Hotels Inc. and a 63.47 percent stake in ABCIC Property Holdings Inc. for a total purchase price of P2.3 billion.

Phinma’s Education group has achieved strong growth since its inception in 2004 and is now the country’s largest tertiary education network with 124,501 students enrolled for the school year 2022 to 2023.

The hospitality group, which owns and manages all 15 Microtel and TRYP hotels across the country, is likewise recovering along with the recovery of Philippine economic growth.

Under the transaction, Phinma Corp. will purchase the following assets from Phinma office building, Phinma Plaza located in Rockwell Center, Makati, which are used in the day-to-day operations of Phinma Corp. and its subsidiaries.

Phinma Corp. and Phinma Inc. are targeting to complete the transaction within the year. The execution of the deed of absolute sale will be disclosed subsequently.