MANILA, Philippines–A consortium LED by US-based private equity firm KKR is investing P35.3 billion in Metro Pacific Hospitals Inc. in a mix of equity and convertible bonds.
The consortium includes an affiliate of GIC, the sovereign wealth fund of Singapore, which is already an existing investor in the Metro Pacific group’s hospital business. GIC will restructure its current investment in Metro Pacific Hospitals and will re-invest alongside KKR, Metro Pacific Investments Corp. disclosed to the Philippine Stock Exchange on Tuesday.
The KKR-led consortium will subscribe to P5.2 billion (US$ 100.0 million) worth of 41,366,178 new common shares equivalent to 6.25 percent of the company’s total par value.
Proceeds from the sale of shares in the company are expected to be used to support Metro Pacific Hospitals’ potential investments in additional hospitals and new healthcare businesses. The capital will also be used to grow its existing subsidiaries, associates, and joint ventures.
As part of MPIC’s wider financing arrangementsq, the KKR-led consortium will also invest in a P30.1 billion ($580million) mandatorily exchangeable bond issued by MPIC. The exchangeable bond will grant the KKR-led consortium the right to exchange the bond for 239,932,962 common shares in Metro Pacific Hospitals on the sooner of 10 years or an initial public offering, which may be considered after further development of the business.
MPIC plans to use the proceeds of this issuance to reduce its bank borrowings.
Metro Pacific Hospitals is the operator of the largest private hospitals and healthcare network in the Philippines in terms of authorized bed capacity and revenue, with interests in 14 hospitals and around 3,200 beds across the country. /jpv