After getting fresh capital, Metro Pacific Hospitals scraps IPO plan
MANILA, Philippines – Metro Pacific Hospital Holdings Incorporated (MPHHI) will be postponing its plans to go public after getting fresh capital from a consortium led by a global investment firm.
In a regulatory filing submitted to the Philippine Stock Exchange on Tuesday, October 15, Metro Pacific Investments Corporation (MPIC) president Jose Maria Lim said MPHHI is getting some P5.2 billion and an additional P30 billion from a consortium led by KKR.
Its plan to conduct an initial public offering to raise a massive P75 billion is also put on hold.
"After much consideration we believe we have found the best way forward for Metro Pacific Hospitals and MPIC with this new partnership with KKR. 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 said.
The KKR-led consortium will subscribe to some $100 million or around P5.2 billion worth of 41 million new common shares with MPHHI, which is 6% per value of the hospitals operator.
Proceeds will be used to invest in additional hospitals and new health care businesses.
"KKR's 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," MPHHI president and chief executive officer Augusto Palisoc Jr said.
"We also look forward to accessing KKR's various health care companies in its global portfolio, to bring over new technologies and processes to improve health care services in our country."
Moreover, KKR will invest in a $580-million or P30.1-billion mandatorily exchangeable bond issued by MPIC.
This issuance reduces MPHHI's bank obligations.
KKR has a track record of supporting companies in the global health care sector and has 100 current portfolio companies worldwide.
It has also invested in Voyager Innovations, another Manuel Pangilinan-led company.
The transactions are expected to be completed by year-end, subject to the necessary corporate and regulatory approvals. – Rappler.com