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KKR and GIC to Invest USD683 Million in MPIC Hospital Unit

Global investment firm KKR and an affiliate of Singaporean sovereign wealth fund GIC have agreed to invest PHP35.3 billion (approximately USD683 million) in Metro Pacific Hospital Holdings (MPHH), a Philippines-based private hospital operator controlled by Philippines-listed Metro Pacific Investments Corporation (MPIC). The KKR-led consortium will subscribe to PHP5.2 billion (USD101 million) in new common shares in MPHH. In addition, KKR will lead the purchase of a mandatorily exchangeable bond in MPIC for PHP30.1 billion (USD583 million). The investors will have the right to exchange the bond for approximately 240 million shares in MPHH when the company completes an initial public offering or after ten years. Through the deal, GIC will restructure its existing investment in MPHH and reinvest alongside KKR. The capital raised in the transaction will be used to grow MPHH’s subsidiaries, associates, and joint ventures and to reduce MPIC’s bank debt. The transaction is subject to corporate, regulatory, and other approvals and is expected to close by the end of 2019.