A US$1.6bn (鈧�1.5bn) initial public offering by the largest healthcare operator in the Philippine has been postponed following an investment by Singapore鈥檚 GIC and KKR.
Singapore鈥檚 sovereign wealth fund has backed the KKR Asian Fund III fund, in a deal worth a total of P35.3bn (鈧�620m) to buy into Metro Pacific Hospital Holdings.
In the first tranche of a two-part agreement with Metro Pacific Investment Corporation (MPIC), which controls the hospital operation, KKR and GIC have agreed to subscribe P5.2bn worth of shares, giving them a 6.25% stake in the hospital chain.
The partners have also agreed to take up a bond issued by MPIC for P30.1bn. The bond will eventually convert to almost 240m shares in Metro Pacific Hospitals 鈥渙n the sooner of 10 years or an initial public offering鈥�.
Together, the two transactions will deliver a 42.5% stake in the hospital chain to the KKR-led consortium.
GIC, an existing investor in Metro Pacific Hospitals, would restructure its current investment in the company and re-invest alongside KKR, said the KKR statement.
Ashish Shastry, co-head of Asia-Pacific private equity and head of Southeast Asia at KKR, said: 鈥淢etro Pacific Hospitals exemplifies the type of high-calibre company KKR looks to work with.
鈥漌e are thrilled to play a role in the development of Philippines鈥� healthcare infrastructure.鈥�
MPHH, which has interests in 14 hospitals with approximately 3,200 beds across the Philippines, will use the capital to pay down debt and expand its operations.
Augusto P Palisoc Jr, president & CEO of Metro Pacific Hospitals, said the cash infusion from the KKR-led consortium would enable his group to meet its expansion target of adding 5,000 beds and 30 hospitals before 2030.
鈥淲e also look forward to accessing the various healthcare companies in KKR鈥檚 global portfolio, to bring over new technologies and processes to improve healthcare services in our country.鈥�
KKR is already an investor in Voyager Innovations, a digital technology company of MPIC鈥檚 sister company, PLDT, the largest telecommunications company in the Philippines.
Jose Ma K Lim, president and CEO of MPIC, said: 鈥淎fter much consideration, we believe we have found the best way forward for Metro Pacific Hospitals and MPIC with this new partnership with KKR.鈥�
