Metro Pacific Investments Corp. plans to raise P15 billion to P20 billion from the sale of shares in its hospital business.
Metro Pacific chief finance officer David Nicol said in a news briefing the company was looking at various options including private placement or initial public offering.
“We are still looking at some ideas to bring external money into the hospital portfolio whether through IPO or private placements. We are evaluating our options,” Nicol said.
Nicol said the sale share could be finalized this year or early 2020. The company targets to have 5,000 beds over the next two years.
Metro Pacific Hospital Holdings Inc. has 3,200 hospital beds across 14 hospitals. MPHHI president Augusto Palisoc said the company aimed to have 30 to 40 hospitals with 5,000 beds under its portfolio.
Metro Pacific said core net income climbed 7 percent in 2018 to P16.1 billion from P14.1 billion in 2017, lifted by the steady growth of power, toll road and water businesses.
Metro Pacific said in a disclosure to the stock exchange power accounted for P10.8 billion, or 55 percent of net operating income. This was followed by tollroads which contributed P4.4 billion or 23 percent.
The group’s water subsidiary contributed P3.8 billion while the hospital group provided P771 million.
The company’s rail, logistics and systems group posted a net loss of P248 million.
“Our earnings growth reflects meaningful volume increases for all our businesses, supported by years of high investment and our continuing emphasis on operational efficiencies,” said Metro Pacific president and chief executive Jose Ma. Lim.
Maynilad Water Services Inc. posted a core net income of P7.7 billion last year, up 5 percent year-on-year, driven by revenue growth, lower provisions and lower interest expense.
The group’s toll road business delivered P4.5 billion in core net income, up 13 percent from P3.9 billion in 2017, on higher volume across its road networks in the Philippines, Indonesia, Thailand and Vietnam.
MPHHI also recorded a core net income P2.4 billion in 2018, up 15 percent from the previous year, on a 14-percent rise in aggregate revenues.
Light rail, logistics and other businesses registered a net loss of P248 million.
“We are pleased with the performance of MPIC companies for 2018,” said Metro Pacific chairman Manuel Pangilinan.
“We are seeing the partial resolution of some of our long-pending tariff issues. That’s the good news. Regrettably, the shape of the resolution in the form of staggered tariff increases and concession extensions does not provide sufficient immediate cash flows to cover the upfront financing costs of our current expansion program,” he said.