A total of 134,000 shares will be offered to credentialed doctors who do not presently own any shares in Makati Med. The remaining 67,000 shares will be sold to credentialed doctors who through existing shareholders of the company, need to acquire additional shares to fully comply with the ownership requirement.
The shares, which carry a par value of P100 per share, will be sold at P1,000 each.
Under the hospital’s ownership requirement, each credentialed physician is required to own the higher of 1,500 common shares for active staff members or 750 common shares for associate staff members and 100 common shares for every square meter of clinic space in the hospital.
"The physicians understand that the ownership requirement is prerequisite for their continuing accreditation with and medical practice in the hospital. The fact that they have opted to practice at the hospital means that they have performed their respective due diligence on the company and the hospital and its facilities and have accepted the hospital’s ownership requirement," Makati Med president and chief executive officer Manuel Fernandez Jr. said.
Fernandez said the offering will allow Makati Med to successfully implement its financial plan for its capital expenditure and equipment acquisition program.
He said the offering will also ensure the hospital’s continuing operations via the implementation of its loan restructuring program.
Under the loan restructuring program, Makati Med’s creditors have required an equity infusion as one of the pre-requisites for agreeing to restructure their respective loan exposures to the hospital.
Makati Med is faced with liquidity problems and is in talks with creditors to restructure P1.2 billion in debts.
ATR-Kim Eng has been appointed by Makati Med as its financial adviser for its plan to restructure debts and raise new funds.
Makati Med has been incurring losses for the past three years allegedly due to mismanagement.
Last July, the hospital brought in some new board members, including telco czar Manuel Pangilinan and banker Francisco Dizon to help it stay afloat.