MANILA, Philippines - Metro Pacific Investments Corporation (MPIC) signed an agreement with Thai hospital group Bumungrad that will allow it to acquire a controlling stake in Asian Hospital Inc. The acquisition is estimated to cost P1.46 billion.
Asian Hospital will be the 6th hospital of MPIC, the local unit of the First Pacific group that is headed by businessman Manuel V. Pangilinan.
In a disclosure to the Philippine Stock Exchange, MPIC said it reached an agreement with Bumungrad International Ltd. (BIL) that will allow it to execute transactions to buy the controlling interest in Asian Hospital.
Under the agreement, MPIC will buy the 100% stake in Bumrungrad International Philippines, which owns 532.58 million shares in Asian Hospital, for P732 million.
It will also purchase Neptune Stroika Holdings which is 40% owned by BIL and has 473.1 million shares of Asian Hospital, for P601 million, and another 88.54 million shares of Asian Hospital for P123 million.
The company will also conduct a mandatory tender offer for all the remaining Asian Hospital shares held by the public.
"The final shareholding of MPIC in Asian Hospital will depend on the results of the tender offer, but based on the aforementioned interests alone MPIC is expected to own no less than approximately 57% of Asian Hospital," MPIC said.
The transaction is expected to be completed before the end of 2011.
Asian Hospital began its operations in 2002, founded by renowned heart surgeon Dr. Jorge Garcia. It is a 219-bed tertiary hospital located in Filinvest Corporate City in Alabang, Muntinlupa.
"We are excited with our investment in Asian Hospital, one of the premier medical facilities in our country that is about to complete its 14-storey second tower which cost approximately P1.2 billion to build. Tower 2 will house an additional 144 beds (thereby increasing capacity to 363 beds), outpatient facilities, doctors’ clinics, food outlets and even more parking spaces for our customers," Augie Palisoc Jr., MPIC Hospital Group president and CEO, said in a statement.
Asian Hospital is the 6th owned by the MPIC Hospital Group, now considered the largest private hospital operator with 1,800 beds throughout the country.
The group includes Makati Medical Center, Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, Riverside Medical Center in Bacolod, and Davao Doctors Hospital in Mindanao.