SINGAPORE’S sovereign wealth fund GIC and private equity giant KKR will take a 42.5 per cent stake in Metro Pacific Hospital Holdings , the Philippines’ largest operator of private hospitals and healthcare services.
MPHH in September filed for an IPO to raise as much as 83.3 billion pesos or US$1.6 billion at a maximum price of 182 pesos per share. On Tuesday, MPIC said it is postponing the IPO “for now”, although a stock market debut may still be considered “after further development of business”. GIC in 2014 also took up 6.5 billion pesos in convertible bonds issued by MPIC, which could potentially be exchanged into an additional 25.5 per cent stake in MPHH. On Tuesday, GIC did not disclose whether any of those bonds had been redeemed or converted.
The fresh funding from KKR and GIC will enable the healthcare group to expand to 30 hospitals and 5,000 beds before 2030, said Augusto Palisoc, MPHH president and chief executive officer. The deal is expected to complete by the end of this year. Conditions precedent include obtaining corporate approvals as well as regulatory and third-party consents, approvals and confirmations.