Singapore fund invests in MPIC

MANILA, Philippines - Singapore’s sovereign wealth fund, one of the world’s largest asset management firms, has expanded its exposure in the Philippines with a P3.7-billion investment in the healthcare sector.

The entry of Government of Singapore Investment Corp. (GIC) will help beef up the largest hospital group in the country, infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) said in a disclosure yesterday.

Manuel V. Pangilinan-led MPIC and GIC “entered into a definitive partnership agreement to facilitate the further expansion of the hospital group of MPIC,” the company said.

GIC, through its affiliates, will invest P3.7 billion for a 14.4-percent share in Neptune Stroika Holdings Inc. (NSHI), MPIC’s wholly-owned subsidiary that will be in charge of all hospital investments.

GIC will also advance P6.5 billion through an exchangeable bond that can be converted into a 25.5-percent share in NSHI.

GIC is a leading global investment firm with more than $100 billion in assets under management. Early this month, it signed a P3.4-billion exchangeable loan deal with Century Canning Corp. of the Po family.

“Proceeds from the bond will be used by MPIC for continuing investments in roads, power and water,” MPIC said, adding that the definitive agreement is subject to a few conditions precedent and is expected to be completed in mid-2014.

“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,” said MPIC president and CEO Jose Ma. K. Lim.

NSHI and MPIC Hospital Group president and CEO Augie Palisoc Jr. said the healthcare firm had been approached by many parties over the last few years.

“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,” Palisoc said.

MPIC Hospital Group has a total bed capacity of 2,137 in its eight hospitals: Makati Medical Center, Davao Doctors Hospital, Cardinal Santos Medical Center (DLSMC), Riverside Medical Center, Our Lady of Lourdes Hospital, Asian Hospital, De Los Santos Medical Center and Central Luzon Doctors’ Hospital (CLDH).

Aggregate core net income of the healthcare group rose 16 percent to P253 million in the first quarter due to increasing patient revenues, gains from completed capital expenditure programs, savings from group synergy projects, and contributions from DLSMC, CLDH and MegaClinic, which were all acquired in the second half last year.

Aside from hospitals, MPIC is also into power distribution (Manila Electric Co.), water utility (Maynilad Water Services Inc.) and toll roads (Metro Pacific Tollways Corp.).