Singapore’s GIC Private Limited announced May 16th it had entered into a definitive partnership agreement with Metro Pacific Investments Corporation (MPIC) to invest PHP 3.7 billion (US$ 84 million) for a 14.4% stake in MPIC’s wholly owned hospital holding company, Neptune Stroika Holdings Inc.
As of March 31, 2013, GIC had 5% of its portfolio invested in Asian countries excluding Japan, China, Hong Kong, South Korea and Taiwan.
The Singapore-based sovereign wealth fund will carry out the investment in Neptune through its private equity division. The deal further stipulates that GIC will purchase an exchangeable bond from MPIC, in which it can opt in for another 25.5% stake in Neptune, for PHP 6.5 billion (US$ 149 million), contingent upon unspecified provisions. MPIC will allocate the bond proceeds to continuing infrastructure investments in roads, water and power. The agreement is expected to be finalized in mid-2014.
“Over the last few years, we have been approached by many parties who have been interested to invest in our hospital business,” said MPIC Hospital Group President and CEO Augie Palisoc Jr. in a press release. “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.”
Makati, Philippines-based Neptune Stroika Holdings owns and operates 8 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. Through a recent acquisition, it also runs a mall-based diagnostic center MegaClinic.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]