Screengrab from www.gic.com.sg
MANILA, Philippines—The 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 can opt to acquire an interest of as much as 39.9 percent.
Pangilinan-led Metro Pacific Investments Corp. signed a deal with GIC that allows the sovereign wealth fund to invest P3.7 billion for an initial 14.4 percent stake in the Neptune Stroika Holdings Inc. (NSHI), a wholly owned subsidiary, which will be the holding company for all of its hospital investments.
On top of this outright purchase of shares in NSHI, the Singaporean fund will also advance to MPIC some P6.5 billion through an exchangeable bond, which 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 the 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!”