Singapore state fund buys into Philippines’ Metro Pacific

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medical centerSingapore’s sovereign wealth fund GIC has partnered with Manila-based Metro Pacific Investments Corp. (MPIC) to acquire a minority stake in MPIC’s hospital business, according to a disclosure to the Philippine Stock Exchange.

Metro Pacific said it entered into a definitive partnership agreement with GIC – through its private equity arm – to further expand the hospital business.

GIC, through its affiliates, will invest $86 million for a 14.4 per cent stake in Neptune Stroika Holdings Inc. (NSHI), Metro Pacific’s wholly-owned unit which will be the holding company for all of its hospital investments.

Neptune Stroika and MPIC Hospital Group president and CEO Augusto Palisoc Jr. said they are streamlining all hospital investments under one roof, a consolidation that is expected to be completed in the third quarter.

“We are centralising everything in that company to be the main vehicle of the MPIC Hospital Group. Some of the hospital assets are already under it,” he said.

Part of the agreement with GIC is for the Singapore wealth fund to separately advance $151 million by way of an exchangeable bond which can be exchanged into a 25.5 per cent stake in NSHI in the future, subject to certain conditions. Metro Pacific will use the proceeds from the bonds to fund investments in roads, power and water concerns.

Palisoc noted the exchangeable bond is a loan to Metro Pacific, which could be exchanged for equity once the parties involved deemed it at the right time.

“The main transaction is the 14.4 percent equity, where they will put in the funds in NSHI to enable it to expand and acquire more hospitals,” he added.

Though subject to a few conditions, the definitive agreement is should be in place sometime in the middle of 2014, according to Metro Pacific.

“We are very happy with this new relationship with GIC, a highly reputable global fund manager,” MPIC president and CEO Jose Ma. K. Lim said also in the disclosure.

“We are looking forward to developing a long-term partnership with them,” he added.

With GIC in the picture, Palisoc said the hospital group can grow not only locally but also overseas.

“Over the last few years, we have been approached by many parties who have been interested to invest in our hospital business,” he said.

“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,” he added.

This year, Metro Pacific targets to acquire at least two hospitals, Palisoc noted, but declined to disclose any further details at this point.

“We continue to talk with hospital owners, but it depends whether it is ripe to close the deal,” he said.

GIC is a leading global investment firm with well over $100 billion in assets under management. Established in 1981, the firm manages Singapore’s foreign reserves and is uniquely positioned for long-term and flexible investments across a wide range of asset classes, including public equities, fixed income, real estate, and private equity.

As of end-March, the Metro Pacific Hospital Group has eight full-service hospitals with 2,150 beds across the country.

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Reading Time: 2 minutes

Singapore’s sovereign wealth fund GIC has partnered with Manila-based Metro Pacific Investments Corp. (MPIC) to acquire a minority stake in MPIC’s hospital business, according to a disclosure to the Philippine Stock Exchange.

Reading Time: 2 minutes

medical centerSingapore’s sovereign wealth fund GIC has partnered with Manila-based Metro Pacific Investments Corp. (MPIC) to acquire a minority stake in MPIC’s hospital business, according to a disclosure to the Philippine Stock Exchange.

Metro Pacific said it entered into a definitive partnership agreement with GIC – through its private equity arm – to further expand the hospital business.

GIC, through its affiliates, will invest $86 million for a 14.4 per cent stake in Neptune Stroika Holdings Inc. (NSHI), Metro Pacific’s wholly-owned unit which will be the holding company for all of its hospital investments.

Neptune Stroika and MPIC Hospital Group president and CEO Augusto Palisoc Jr. said they are streamlining all hospital investments under one roof, a consolidation that is expected to be completed in the third quarter.

“We are centralising everything in that company to be the main vehicle of the MPIC Hospital Group. Some of the hospital assets are already under it,” he said.

Part of the agreement with GIC is for the Singapore wealth fund to separately advance $151 million by way of an exchangeable bond which can be exchanged into a 25.5 per cent stake in NSHI in the future, subject to certain conditions. Metro Pacific will use the proceeds from the bonds to fund investments in roads, power and water concerns.

Palisoc noted the exchangeable bond is a loan to Metro Pacific, which could be exchanged for equity once the parties involved deemed it at the right time.

“The main transaction is the 14.4 percent equity, where they will put in the funds in NSHI to enable it to expand and acquire more hospitals,” he added.

Though subject to a few conditions, the definitive agreement is should be in place sometime in the middle of 2014, according to Metro Pacific.

“We are very happy with this new relationship with GIC, a highly reputable global fund manager,” MPIC president and CEO Jose Ma. K. Lim said also in the disclosure.

“We are looking forward to developing a long-term partnership with them,” he added.

With GIC in the picture, Palisoc said the hospital group can grow not only locally but also overseas.

“Over the last few years, we have been approached by many parties who have been interested to invest in our hospital business,” he said.

“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,” he added.

This year, Metro Pacific targets to acquire at least two hospitals, Palisoc noted, but declined to disclose any further details at this point.

“We continue to talk with hospital owners, but it depends whether it is ripe to close the deal,” he said.

GIC is a leading global investment firm with well over $100 billion in assets under management. Established in 1981, the firm manages Singapore’s foreign reserves and is uniquely positioned for long-term and flexible investments across a wide range of asset classes, including public equities, fixed income, real estate, and private equity.

As of end-March, the Metro Pacific Hospital Group has eight full-service hospitals with 2,150 beds across the country.

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