Global investment firm KKR and Singapore’s sovereign wealth fund GIC completed the investments in Metro Pacific Hospital Holdings Inc., a unit of infrastructure conglomerate Metro Pacific Investments Corp.
MPIC said in a disclosure to the stock exchange the deal was completed through a series of transactions in common shares in MPHHI and in mandatorily exchangeable bonds issued by MPIC.
“We welcome KKR and GIC as investors who not only have established track records of helping healthcare companies to meet their growth ambitions, but also have full confidence in Metro Pacific Hospitals’ potential to provide even more critical healthcare services to patients across the Philippines. Today marks the start of a new and exciting chapter for Metro Pacific Hospitals,” MPIC chairman Manuel Pangilinan said.
Proceeds from the transaction will be used to support MPHHI’s potential investments in additional hospitals and new healthcare businesses. The additional capital will also be used to grow the company’s existing subsidiaries, associates and joint ventures.
MPHHI is the operator of the largest private hospitals and healthcare network in the Philippines in terms of authorized bed capacity and revenues, with interests in 14 hospitals and 3,200 beds across the country.
The company is focused on delivering high-quality healthcare solutions to patients at a time when more Filipinos are seeking premium medical services, driven by rising per capita incomes and rapid urbanization.
“The Philippine healthcare industry is poised for tremendous growth given the increasing demand for hospitals, clinics, and facilities that provide premium medical services. With this new investment, coupled with the expertise that KKR and GIC bring to Metro Pacific Hospitals, we will be in an even stronger position to meet patients’ needs and capture new opportunities through organic expansion, acquisitions and investments, and the adoption of new technologies,” said MPHHI president and chief executive Augusto Palisoc Jr.
Ashish Shastry, co-head of Asia Pacific private equity and head of Southeast Asia at KKR, said: “Metro Pacific Hospitals is a world-class healthcare institution with a terrific team of doctors and medical practitioners who play a critical role in the lives of millions. We are excited to begin our work alongside this excellent team and look forward to supporting Metro Pacific Hospitals’ continued growth and development for healthcare providers and patients in the years to come.”
KKR made its investment from its flagship Asian Fund III.
