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