GIC invests $84m in Philippines hospital business

In addition to taking an equity interest in Neptune Stroika Holdings, which acts as a holding company for all Metro Pacific's hospital investments, the Singapore sovereign wealth fund will subscribe to a PHP6.5 billion exchangeable bond. This can be converted into a 25.5% stake in Neptune Stroika, subject to certain conditions.

Metro Pacific will channel the proceeds into ongoing investments in roads, power and water. The company's assets include Manila North Tollways Corporation, Beacon Electric - a joint venture with Philippine Long Distance Telephone Company that controls Manila Electric Company, the Philippines' largest power distributor - and Maynilad Water Services.

In healthcare specifically, Metro Pacific owns five hospitals in Manila and one in each of Central Luzon, Visayas and Mindanao. It had 2,118 beds and 5,418 doctors and served more than 1.7 million patients in 2013. The hospitals business generated PHP12.5 billion in revenue, up from PHP11.3 billion in 2012, while reported income reached PHP886 million, up from PHP713 million in 2012.

"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," Augie Palisoc, president and CIO of the hospital group, said in a statement.

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• Topics
• Expansion
• Southeast Asia
• GIC Private
• Singapore
• Sovereign wealth fund
• healthcare
• Growth capital
• Philippines