KKR buying into Phinma education arm in P8.3-B deal
MANILA, Philippines — A global investor group led by KKR will buy into the education arm of Phinma Corp. in an P8.3-billion deal that intends to bring fresh equity to bankroll education and system improvement programs.
In a stock exchange filing on Wednesday, Phinma said Phinma Education Holdings Inc. would issue P4.5 billion worth of new shares to Phoenix Investments II Pte. Ltd., an investment vehicle of funds managed by international firm KKR Global Impact, and Rise Edu Pte. Ltd., which is managed by Kaizenvest III, a unit of shareholder Kaizen Private Equity II Pte Ltd.
READ: Phinma Education expanding school network
At the same time, Phinma said the funds managed by KKR would buy all the shares currently held by Asian Development Bank, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V., and Kaizenvest II in Phinma Education. These companies will no longer hold any shares after the transactions, which the Philippine Competition Commission has yet to clear.
Once the deals are closed, KKR will have a 30.67-percent stake in Phinma Education, while Kaizenvest III will own 3.73 percent. Parent firm Phinma Corp. will remain the majority shareholder.
Local investment house AB Capital served as the sole adviser for the transaction.
Collaboration
“It’s P8.3-billion [deal] total—P4.5 billion goes to Phinma Education in exchange for new shares; P3.8 billion goes to the secondary sellers ADB, FMO and Kaizenvest,” Anton Periquet, AB Capital Group executive chair, told the Inquirer.
He said the transaction valued Phinma Education at P24.1 billion, post-money, of which Phinma will own 61 percent. “This values Phinma’s stake in the company at P14.7 billion,” he added.
“This collaboration between Phinma Education and KKR, a like-minded strategic partner, puts us in a better position to serve and uplift the youth of the Philippines and Southeast Asia,” Phinma chair and CEO Ramon del Rosario Jr. said in a statement.
Under the agreement, KKR will also be entitled to three of the 11 seats on Phinma Education’s board of directors.
KKR is a global investment firm that offers alternative asset management, capital markets, and insurance solutions. INQ
