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ADB, Indian equity fund get 20.3% stake in Phinma unit

Kaizen Private Equity II Pte. Ltd. and the Asian Development Bank are acquiring a combined 20.28-percent stake in Phinma Education Holdings Inc., a unit of listed Phinma Corp., for P1.625 billion.

Phinma said in a disclosure to the stock exchange its board approved the signing of an investment agreement that will involve the issuance of P1.625 billion worth of PEHI shares to Kaizen Private Equity and the ADB.

“Upon closing of the transaction which is expected on or before September 30, 2019, subject to the fulfillment of certain closing conditions, Phinma will remain as the majority shareholder of PEHI,” Phinma said.

PEHI is the holding company for Phinma’s investments in educational institutions. 

It owns Araullo University, Cagayan de Oro College, University of Pangasinan, University of Iloilo, Southwestern University and St. Jude College. It has a 50-percent stake in Phinma Saytanar Education Ltd. in Myanmar.

Philippine Investment Management Inc. under the agreement will swap its shares in AU and COC for a 9.06-percent stake in PEHI. 

Phinma’s interest in PEHI will rise to 68.6 percent after the completion of the transaction.

Kaizen Private Equity is s India’s first private equity fund focused on education sector.

PEHI last month signed a joint venture agreement with an Indonesian partner, PT Tripersada Global Manajemen, to form Ind-Phil Management Co.

PEHI and Tripersada under the joint venture agreement will form PT Ind Phil Management, which will manage tertiary institutions for Yayasan Triputra Persada Horizon Education, with the first situated in West Java, Indonesia.

The investment marks PEHI’s entry into Indonesia in line with its regional strategy.

Indonesia, with a population of over 260 million, provides the company with a new market to serve and a new source of income.

Topics: Kaizen Private Equity II Pte. Ltd. , Asian Development Bank , Phinma Education Holdings Inc. , Phinma Corp. ,
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