Manila—(PHStocks)—Metro Pacific Investments Corp. (MPIC, PSE: MPI) and GIC Pte Ltd (formerly known as Government of Singapore Investment Corp.), Singapore’s sovereign wealth fund through its private equity arm, have entered into a definitive partnership agreement to facilitate the further expansion of the hospital group of MPIC.
GIC, through its affiliates, will invest PhP3.7 billion (approximately $84 million) for a 14.4% stake in Neptune Stroika Holdings Inc. (NSHI), MPIC’s wholly-owned subsidiary, which will be the holding company for all of its hospital investments.
GIC will also advance to MPIC PhP6.5 billion ($149 million) by way of an Exchangeable Bond which can be exchanged into a 25.5% stake in NSHI in the future, subject to certain conditions. Proceeds from the bond will be used by MPIC for continuing investments in roads, power and water. This definitive agreement is subject to a few conditions precedent and is contemplated to be completed sometime in the middle of 2014.
MPIC President & CEO Jose Ma. K. Lim said, “We are very happy with this new relationship with GIC, a highly reputable global fund manager. We are looking forward to developing a long-term partnership with them.”
NSHI and MPIC Hospital Group President & CEO Augie Palisoc Jr. noted, “Over the last few years, we have been approached by many parties who have been interested to invest in our hospital business. We are happy to select one whom I believe we can work with to grow our business not only in hospitals but also in other health-related fields, both in the Philippines and possibly abroad. This marks a new and exciting beginning for our hospital group!”
GIC is a leading global investment firm with well over $100 billion in assets under management. Established in 1981, the firm manages Singapore’s foreign reserves and is uniquely positioned for long-term and flexible investments across a wide range of asset classes, including public equities, fixed income, real estate, and private equity. In private equity, GIC invests through funds as well as directly in companies, partnering with fund managers and management teams to help world class businesses achieve their objectives. GIC employs more than 1,200 people across offices in Singapore, Beijing, London, Mumbai, New York, San Francisco, Sao Paulo, Seoul, Shanghai, and Tokyo.
The MPIC Hospital Group under NSHI comprises eight premier hospitals – Makati Medical Center, Asian Hospital, Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, De los Santos Medical Center, Davao Doctors Hospital, Riverside Medical Center in Bacolod, and Central Luzon Doctors Hospital in Tarlac – with a total capacity of 2,200 beds, and a recently acquired mall-based diagnostic center MegaClinic.