Posted on
June 04, 2013 11:20:31 PM [ BusinessWorld Online ]
METRO PACIFIC
Investments Corp. (MPIC) has wrapped up a P250-million deal to acquire a
controlling stake in a Quezon City-based hospital, the listed conglomerate said
in statement attached to a disclosure yesterday.
“MPIC completed its investment of a 51%
equity ownership of De Los Santos Medical Center, Inc. (DLSMC), making DLSMC
the seventh hospital in the company’s growing portfolio and raising the group’s
total bed capacity to 1,944 beds, the largest private hospital group in the
Philippines,” the company said.
The
P250-million fresh funding will be used to bankroll renovation of the hospital,
which has a bed capacity of 150.
MPIC said it
would refurbish 39-year-old main hospital building and upgrade operating rooms
and diagnostic centers.
A new
“Medical Arts Building” will also be erected to house the increasing number of
accredited doctors while the new medical equipment will be acquired, MPIC said
in its statement.
Raul C.
Pagdanganan was appointed the new president and chief executive officer,
replacing Jose V. De Los Santos, Jr., the disclosure said.
MPIC Hospital
Group Chief Executive Officer Augusto P. Palisoc, Jr. said the conglomerate was
“thankful” to the hospital’s shareholders.
“Again, we
are thankful for the trust and confidence shown to us by the existing
shareholders of DLSMC -- the De Los Santos family and Systems Technology
Institute (STI) -- in welcoming our investment,” Mr. Palisoc said in the same
statement.
STI had owned
a significant minority interest in the hospital prior to the acquisition.
MPIC in
November last year signed an investment agreement with major shareholders of
DLSMC to a acquire majority stake in the hospital.
The deal,
initially targeted to be completed in the first quarter, was delayed due to
documentation required by the Securities and Exchange Commission.
Prior to the
latest acquisition, MPIC had already controlled Makati Medical Center, Cardinal
Santos Medical Center, Our Lady of Lourdes Hospital and Asian Hospital in Metro
Manila; Riverside Medical Center in Bacolod City and Davao Doctors Hospital in
Davao City, with a combined capacity of 1,800 beds.
Mr. Palisoc
last month said the company was in talks to buy a hospital in Tarlac. That deal
is expected to be closed in the first half, according to MPIC Chief Executive
Officer Jose Ma. K. Lim had said in March.
Mr. Lim added
then that MPIC has set aside P3.5 billion to acquire four 200-bed hospitals in
the provinces.
MPIC’s net
income grew by 12.97% to P2.70 billion in the first quarter from P2.39 billion
in the same period last year, driven by its utilities and hospital businesses.
Aggregate
core profits of MPIC Hospital Group rose 13% annually to P219 million in the
first quarter on “higher patient revenues and “tighter expense controls.”
MPIC, whose
shares shed six centavos or 1% to close at P5.95 apiece yesterday from P6.01
last Monday, is the local unit of Hong Kong-based First Pacific Co. Ltd., which
partly owns Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings,
Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc.,
has a minority stake in BusinessWorld. -- Cliff Harvey C. Venzon
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