Metro
Pacific Investments Corp. (MPIC), the locally listed infrastructure
unit of Hong Kong-based First Pacific Co. Ltd., is spending P300 million
to acquire the operator of the Cardinal Santos Medical Center in San
Juan, Metro Manila, from an affiliate company.
MPIC
told the Philippine Stock Exchange on Monday it is buying 100 percent
of Colinas Verdes Hospital Managers Corp., which has a 20-year lease
agreement with Philippine Realty Corp. to operate the 237-bed Cardinal
Santos Medical Center.
Colinas Verdes is a
wholly owned subsidiary of MPIC affiliate Medical Doctors Inc., which
owns and operates Makati Medical Center.
The
deal also calls for MPIC to assume certain guarantees to Philippine
Realty, which is owned by the Roman Catholic Church of the Philippines.
Colinas
Verdes’s most recent financial data showed that net income in 2010 hit
P118.39 million, slightly higher by 0.62 percent as revenues rose to
P1.24 billion.
“MPIC
will be able to fully consolidate the financials of [Colinas Verdes],”
Augie Palisoc Jr., president and chief executive of the MPIC Hospital
Group, said in a statement.
“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,” he said.
MPIC,
meanwhile, said the cash to be generated by Medical Doctors Inc. will
provide it with additional funds for the upgrade and modernization of
Makati Medical Center, which includes facilities renovation and the
purchase of state-of-the-art medical equipment.
MPIC
is the largest private-hospital operator in the country: five premier
medical facilities with a total of 1,600 beds. The company is still
looking for new acquisitions as it strives to grow to 15 hospitals with
5,000 beds in five years, the company revealed earlier.
Other
hospitals in the group include Our Lady of Lourdes Hospital in Sta.
Mesa Manila, Riverside Medical Center in Bacolod and Davao Doctors
Hospital in Mindanao.
This
segment accounted for 3 percent of MPIC’s core earnings, or P99
million, as of the first six months of this year. MPIC, which is also
involved in water infrastructure, toll roads and electricity
distribution, earlier projected that core profits would rise almost a
quarter to P4.8 billion in 2011.
Shares of MPIC rose 1.67 percent to P3.05 each on Monday.
In Photo:
The Cardinal Santos Medical Center in Greenhills, San Juan, is shown in
this photo taken on Monday. Metro Pacifi c Investments Corp. said it
agreed to acquire the company that operates the hospital for P300
million. (Nonoy Lacza)
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