Metro Pacific mulls IPO for hospital business
MANILA, Philippines – Infrastructure conglomerate Metro Pacific Investments Corporation (MPIC) said it may consider listing its hospital business through an initial public offering (IPO).
MPIC, under its unit Metro Pacific Hospital Holdings Incorporated, currently has a chain of private hospitals with a combined total of 2,244 beds.
MPIC President and CEO Jose Ma K. Lim said the conglomerate has received offers from local and foreign banks to underwrite the IPO of the hospital business of the group.
“It (hospital group) has reached a scale that has attracted financial advisers because they are the ones that came to us. We certainly didn't go out to ask for them,” Lim said.
But Lim said MPIC may consider doing the IPO after the May 2016 elections. “But we're not convinced this is the right time because of the election but we've received offers from some banks,” he added.
If the plan pushes through, this would the first subsidiary of MPIC to be listed with the stock exchange.
MPIC’s tollway group Metro Pacific Tollways Corporation was previously listed with the Philippine Stock Exchange but was delisted in 2013 due to failure to comply with the 10% minimum public ownership requirement.
The conglomerate targets to hit 5,000 hospital beds over the next couple of years through acquisition and expansion of existing hospital facilities to achieve a P1.5-billion ($32.20 million) net income.
Under the plan, MPIC’s hospital group plans to acquire two hospitals annually, and to expand existing hospital facilities by another 700 to 800 beds.
It was in 2014 when MPIC took in Singapore’s sovereign wealth fund GIC as its strategic partner for its hospital business.
The partnership saw GIC acquiring 14.4% stake in Metro Pacific’s hospital business worth P3.7 billion ($79.39 billion).
Lim said GIC is aware of MPIC’s direction to list its hospital business.
MPIC currently operates and manages 9 hospitals under its portfolio: Asian Hospital & Medical Center, Cardinal Santos Medical Center, Central Luzon Doctors Hospital in Tarlac, Davao Doctors Holdings Incorporated, De Los Santos Medical Center, Western Mindanao Medical Center in Zamboanga City, Makati Medical Center, Our Lady of Lourdes Hospital, and Riverside Medical Center in Bacolod.
MPIC has also offered to acquire the remaining 65.18% interest in the 315-bed Davao Doctors Hospital.
In a disclosure to the stock exchange on October 1, MPIC said its hospital unit launched a general offer to acquire the remaining 587,154 shares of stock in Davao Doctors Hospital (Clinica Hilario), Incorporated. – Rappler.com
$1 = P46.60