Metro Pacific Investments Corporation (MPIC) has finished its deal with Kohlberg Kravis Roberts & Co. (KKR), a United States-based company, and GIC Private Ltd., a Singapore based fund for the P35.3-billion investments in its hospital unit. The firm disclosed that these 2 foreign investors were able to complete the financial deal so that they can now acquire shares in Metro Pacific Hospital Holdings, Inc. (MPHHI) and MPIC’s mandatorily exchangeable bonds. For those who have no idea with this deal, MPHHI postponed its initial public offering because it was able to get this kind of deal. Read my blog for the full story.
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It was also disclosed that KKR made its investment through its Asian Fund III worth $9.1 billion. This fund is initially targeted for investments in the Asia Pacific, specifically in private equity transactions. The investment made by KKR came right after MPIC announced that it would sell P5.2 billion worth of 41.37 million new common shares in MPHHI, it’s hospital unit and as well as MPIC’s mandatorily exchangeable bonds worth P30.1 billion. MPIC reported that once the transaction is completed, its stake in MPHHI would reduce to 20% or equivalent to 132.59 million shares. The investment closed has subsequently delayed the initial public offering of MPHHI supposedly set this year.
In October of this year, Metro Pacific Investments Corporation (MPIC) disclosed that it inked certain definitive agreements for MPPHI and Kohlberg Kravis Roberts & Co. (KKR)—the firm leading a consortium based on the United States. Arran Investments Pte. Ltd, an affiliate of the sovereign wealth fund of the government of Singapore GIC Private Ltd was with the meeting as well. MPIC believed that they have found the best way for MPPHI to go forward with the help of KKR. With this, the firm was able to hold for now the initial public offering for its hospital unit. MPIC then extended its gratitude to all the people involved in the agreement.
MPIC said that the proceeds from this transaction will go to opening additional hospitals and new healthcare businesses with the MPPHI brand. This is in addition to expanding its current associates, subsidiaries, and joint ventures. The consortium bought an equivalent P30.1-billion mandatorily exchangeable bonds and these may be traded for 239.93 million common shares within a 10-year time or upon listing of MPPHI, whichever comes earlier. From this transaction, the proceeds will be utilized to reduce the bank borrowings of MPIC.