Singapore fund invests P10B in MVP hospital unit
MANILA, Philippines—Government of Singapore Investment Corp. (GIC) is investing P10.2 billion in the Metro Pacific group led by businessman Manuel V. Pangilinan, coming in as a strategic partner in the hospital business where it could choose to acquire an interest of as much as 39.9 percent.
Pangilinan-led Metro Pacific Investments Corp. (MPIC) signed a deal with GIC that allowed the sovereign wealth fund to invest P3.7 billion for an initial 14.4-percent stake in Neptune Stroika Holdings Inc. (NSHI), a wholly owned subsidiary that will be the holding company for all of its hospital investments.
On top of the outright purchase of shares in NSHI, the Singaporean fund will also advance to MPIC some P6.5 billion through an exchangeable bond that it can swap for an additional 25.5-percent stake in NSHI in the future, subject to certain conditions.
The deal, which is subject to a few conditions and expected to be completed sometime in the middle of this year, allows MPIC to keep a controlling stake in the hospital group while raising fresh funds for an ongoing group-wide expansion program.
Proceeds from the bond would be used by MPIC for continuing investments in roads, power and water, MPIC said.
“We are very happy with this new relationship with GIC, a highly reputable global fund manager. We are looking forward to developing a long-term partnership with them,” MPIC president Jose Ma. K. Lim said.
NSHI and MPIC hospital group president Augie Palisoc Jr. said: “Over the last few years, we have been approached by many parties who have been interested to invest in our hospital business. We are happy to select one whom I believe we can work with to grow our business not only in hospitals but also in other health-related fields, both in the Philippines and possibly abroad. This marks a new and exciting beginning for our hospital group.”
The MPIC Hospital Group under NSHI comprises eight premier hospitals—Makati Medical Center, Asian Hospital, Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, Delos Santos Medical Center, Davao Doctors Hospital, Riverside Medical Center in Bacolod, and Central Luzon Doctors Hospital in Tarlac—with a total capacity of 2,075 beds, and a recently acquired mall-based diagnostic center MegaClinic.
GIC is a leading global investment firm with more than $100 billion in assets under management. It has been recently active in scouting for investments in the Philippines, whose government is now rated investment grade by all three major global rating agencies.
Recently, GIC also invested P3.4 billion in Century Canning Corp., the holding and management company of the Po family. The investment was in the form of a loan that can be converted by GIC into an 11-percent stake in newly listed Century Pacific Food Inc. (CNPF). In November last year, it acquired a 5.6-percent stake in Ayala-led Bank of the Philippine Islands.
Established in 1981, GIC manages Singapore’s foreign reserves and is positioned for long-term and flexible investments across a wide range of asset classes, including public equities, fixed income, real estate and private equity. In private equity, it invests through funds as well as directly in companies, partnering with fund managers and management teams to help world-class businesses achieve their objectives. GIC employs more than 1,200 people across offices in Singapore, Beijing, London, Mumbai, New York, San Francisco, Sao Paulo, Seoul, Shanghai and Tokyo.
