Tuesday, 15 October 2019

MPIC secures US$680 million from KKR investment in hospital unit

KUALA LUMPUR, Oct 15 -- Metro Pacific Investments Corporation (MPIC), KKR and GIC have signed certain definitive agreements, under which KKR and GIC’s affiliate will invest in Metro Pacific Hospital Holdings Inc (the Company).

Metro Pacific Hospitals is the operator of the largest private hospitals and healthcare network in the Philippines, in terms of authorised bed capacity and revenue, with interests in 14 hospitals across the country.

In a statement, KKR said the investment would be in a common shares series of investments in the Company and mandatorily exchangeable bonds issued by MPIC.

GIC will restructure its current investment in the Company and will re-invest alongside KKR.

Under the agreement, the KKR-led consortium will subscribe to Philippine peso (Php) 5.2 billion (US$100 million) worth of 41,366,178 new common shares, equivalent to 6.25 per cent of the aggregate par value of the Company. (US$1 = RM4.19)

Proceeds from the sale will be used to support Metro Pacific Hospitals’ potential investments in additional hospitals and new healthcare businesses. The capital will also be used to grow the Company’s existing subsidiaries, associates and joint ventures.

As part of MPIC's wider financing arrangements, the KKR-led consortium will also invest in a Php 30.1 billion (US$580 million) mandatorily exchangeable bond issued by MPIC.

The exchangeable bond shall grant the consortium the right to exchange the bond for 239,932,962 common shares in Metro Pacific Hospitals at the soonest 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.

The transactions are expected to complete by year-end. KKR will make this investment from its Asian Fund III.

-- BERNAMA

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