MPIC UNIT IS EXTENDING MDI SHARES TENDER OFFER | Marvin Germo

MPIC UNIT IS EXTENDING MDI SHARES TENDER OFFER

By: Marvin Germo | July 27, 2019

MPHHI Extends Its Tender Offer

Metro Pacific Holdings, Inc. (MPHHI), the hospital unit of Metro Pacific, is extending its tender offer to purchase the shares of Medical Doctors, Inc. (MDI) worth P2.261 billion. The company gave a time allowance so the shareholders of the said hospital will have time to think about the offer. According to MPPHI, the offer was extended until August 9. From the original deadline of July 26, the Securities of Exchange Commission has given its approval to extend the timeline. While both companies are taking their time to consider the transaction, it’s also the time for investors to take into account the future growth of MPHHI.

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MPHHI Will Own Half Of The Company

The extended time will eventually give MDI time to clarify some terms and prepare the necessary documents for the sale. The firm disclosed that as of July 24, the total shares that were tendered was 17,636, which is considered as falling below its target to get at least 536,000 common shares from the Makati Medical Center operator. The shares included in the tender offer would account for 16.6% of the total outstanding shares of MDI. If fully acquired, this will add up to the 33.3% stake MPHHI is currently holding. Overall, the company will hold not more than 49.9% of MDI’s shares. Half of MDI will go to MPHHI soon and it’s the best moment to add MPIC to your list of investments.

Total Amount Of Consideration 

The company also said that aside from the tender offer extension, it’s also extending the settlement period. It should be within 10 business days after the offer’s termination or when the Philippine Competition Commission approves it. Initially, 75% of the total purchase price will be paid by MPHHI and the balance will be paid within 5 days after the delivery of original certificates to the offeror. These certificates should be valid and should have the registration authorization from the appropriate RDO. The transfer of shares wouldn’t take so much time.

MPIC Is Expanding Through MPHHI

MPI has the plan to increase its subsidiary’s capital to P20 billion by late this year or by 2020. The subsidiary they are talking about here is the Metro Pacific Hospital Holdings, Inc. (MPHHI), MPIC’s hospital unit. The raise in the capital would allow the firm to build a total of 30-40 hospitals across the country in the near future. The parent company is still assessing whether to go for an initial public offering or private placement to protect the money for the capital raise. As of today, MPHHI has 14 hospitals.

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