By Danessa O. Rivera
11/01/2011 [ tribune.net.ph ]
Metro Pacific Investments Corp. (MPIC) is set to acquire 100 percent of the shares of Colinas Verdes Hospital Managers Corp. (CVHMC), through its affiliate Medical Doctors Inc. (MDI).
MPIC said it has entered into an agreement with MDI which owns and operates the Makati Medical Center.
CVHMC is a wholly-owned subsidiary of MDI that was established in 2008 to enter into a 20-year Lease Agreement with Philippine Realty Corp. (PRC) to operate the Cardinal Santos Medical Center, a 237-bed tertiary hospital located in Wilson Street, San Juan, Metro Manila. MDI has also guaranteed certain obligations of CVHMC to PRC.
Under the terms of the agreement, which is subject to the approval of PRC, MPIC will acquire 100 percent of the shares of CVHMC from MDI for P 300 million and assume all the guarantee obligations of MDI to PRC.
MPIC Hospital Group president Augie Palisoc Jr. said the transaction is beneficial to all parties involved as it will generate a substantial amount of cash for MDI to enable it to continue funding its major upgrade programs — facilities renovation, purchase of state-of-the-art medical equipment, environmentally-friendly energy savings initiatives — to modernize and further improve Makati Medical Center.
“It will also free MDI from the need to possibly fund Cardinal Santos Medical Center’s own expansion program. It will make CVHMC a direct wholly-owned subsidiary of the MPIC Hospital Group. As such, MPIC will be able to fully consolidate the financials of CVHMC,” he said.
“With this restructuring, we will be able to directly support both hospitals and pursue their respective improvement/expansion programs for the benefit of their patients, doctors, and other stakeholders,” Palisoc added.
The MPIC Hospital Group is now the largest private hospital operator in the Philippines consisting of five premier hospitals with a total of 1,600 beds. Comprising the MPIC Hospital Group are Makati Medical Center, Cardinal Santos Medical Center in San Juan, Metro Manila, Our Lady of Lourdes Hospital in Sta. Mesa Manila, Riverside Medical Center in Bacolod, and Davao Doctors Hospital in Mindanao.