Metro Pacific Hospital Holdings Inc., the hospital group of Metro Pacific Investments Corp., may issue exchangeable bonds to prospective investors as it reviews plans for an initial public offering.
“So, we’re thinking of perhaps to be certain that we can raise the funds for MPIC and for the hospitals itself. Maybe, we should issue an exchangeable bond in the next two to three months, that is convertible directly to the hospitals, to the hospital holding company,” said MPIC chairman Manuel Pangilinan Tuesday.
Pangilinan said MPHHI, the largest hospital operator in the country with 14 nationwide and a network of primary care clinics and cancer centers, has planned to conduct an IPO by end of the year or early next year. MPIC owns 60 percent of MPHHI while GIC Private Ltd., Singapore’s wealth fund, holds 40 percent.
“The process has started for the hospitals and the main path they are taking is an IPO, which is correct… I think we will eventually put to bed the IPO. I just don’t know whether the schedule is firm enough that we can conclude it within the year,” said Pangilinan.
“We hope it’s within the year but I am not sure myself that we can accomplish that because there are so many hoops that we have to go through. So we are thinking of these exchangeable bonds so we can raise the money for Metro then you could (plan) it within the year or early next year,” he added.
MPIC earlier said it might raise between P15 billion and P20 billion from the planned sale of shares in the hospital group.
“Depends on what the estimated IPO proceeds are, so it’s gonna be some broad estimate, so that’s gonna be the size,” Pangilinan said.
“It’s gonna be the same people who are gonna buy the exchangeable bonds because what we are looking at is a mandatory exchange into MPHHI shares at pre-determined ratio, so then you are not pressed for time to do the IPO,” he said.
MPIC and MPHHI are raising funds to finance other projects, including acquisition of other hospitals.
“The hospital group has been very busy with expanding in respect to existing hospitals other than Medical City and with this IPO, there will be fund raising for Metro,” he said.
MPHHI officials earlier said the company was no longer inclined to conduct an IPO and would instead pursue a strategic investor to raise money.
MPHHI president Augusto Palisoc said the company was keen on 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.