Metro Pacific Hospital Holdings Inc., the hospital group of Metro Pacific Investments Corp., is no longer inclined to do an initial public offering and will instead pursue a strategic investor to raise money.
MPHHI president Augusto Palisoc said in a press briefing Thursday the company was keen doing a private transaction to implement the parent company’s plan to sell a portion of its stake in the hospital business in order to raise fund to finance other projects.
“I think I have been successful in convincing them not to IPO the hospital space. I believe the course of action is geared more towards private transaction possibly with another investor,” said Palisoc said.
MPIC chief finance officer David Nicol confirmed the company was no longer interested in conducting an IPO. The company, he said, was open to all funding options.
Nicol said the current market environment of lower interest rates and the recent upgrade in the country’s credit rating were helping the company secure lower funding cost.
MPIC earlier said it might raise between P15 billion and P20 billion from the planned sale of shares in the hospital group.
MPIC, meanwhile, reported first-quarter consolidated core net income rose 2.8 percent to ₱3.7 billion from ₱3.6 billion year-on-year, driven by the power, water and hospital businesses.
MPIC said earnings were sustained by an eight-percent increase in operating contribution from core businesses.
Power accounted for ₱2.7 billion or 54 percent of net operating income, while tollroads contributed ₱1.1 billion or 23 percent, and water accounted for ₱900 million.
The hospitals group provided ₱242 million while and the rail, logistics and systems Group contributed ₱7 million.
Consolidated reported net income attributable to owners of the parent company declined seven percent to ₱3.5 billion in the first quarter of 2019 due to refinancing and share issuance costs plus various project expenses.
“Our 8 percent growth in contribution from operations reflects meaningful volume increases for most of our businesses following years of high investment and our continuing emphasis on operational efficiencies,” said MPIC president and chief executive Jose Ma. Lim.
“The rise in our borrowing costs has largely offset the increased operating contribution as we continue to make significant investments in our new road, water, energy and logistics projects. These will take some time to complete and begin contributing to earnings,” he added.
