| AFTER placing its money in Makati Medical Center, listed Metro Pacific Investments Corp. (MPIC) wants to solidify its position in the health-care business through acquisition of at least two more hospitals.
“The successful experience we had in Makati Med we hope to replicate in other hospitals that may be available, not only in Metro Manila but in the provincial capitals and key cities,” MPIC chairman Manuel V. Pangilinan said in an interview.
Discussions are still ongoing, according to Pangilinan, but that an agreement is likely in the offing with one or two more hospitals. He did not name the hospitals. No time frame was also given.
To develop a hospital system with several thousands of beds would be great because the more hospital beds you have, the more economies of scale can be developed, Pangilinan explained.
MPIC’s priority is to acquire an existing hospital with goodwill built-in and an existing client base. That way it can work on expanding the hospital’s clientele.
MPIC is subscribing up to P750 million in convertible subordinated notes being offered by Makati Med to fund in part its new medical building and to upgrade existing hospital facilities and equipment.
MPIC’s investment would be completed this week. The conversion of its subscription would represent around 33-percent equity in Makati Med.
Earlier, the company said it returned to profit in the first quarter of 2007 as it reported a core net income of P124.2 million from a loss of P13.0 million in the same period last year.
Including nonrecurring and exceptional items, reported net income stood at P110.8 million, a 129-percent rise from P48.4 million in the same period in 2006.
MPIC said the results largely came from profits contributed by Maynilad Water Services Inc. property developer Landco Pacific Corp., two of its major investments.
Total revenues, meanwhile, went up 308 percent to P1.13 billion from P277.7 million last year.
“I think the most significant aspect of this is the recurring earnings of MPIC,” Pangilinan said in an interview. He said that Makati Med, considered as a third major investment for Metro Pacific, would be another income contributor to the company.
Very likely, he said, 2007 would be a good year for MPIC. “Just looking at our core income, our guidance profit figure for the year would be between P400 to P450 million,” Pangilinan added.
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