Metro Pacific Investments Corp. (MPIC), the listed investment holding firm of Hong Kong-based conglomerate First Pacific Co. Ltd., is negotiating for a $15.9-million loan to fund its investment in Makati Medical Center.
In a disclosure to the Philippine Stock Exchange, MPIC said its board has authorized negotiations to secure $15.9 million worth of loans from Metro Pacific Holdings Inc. and Ashmore Asian Recovery Fund for funding its investment in the convertible notes to be issued by Medical Doctors Inc., owner and operator of Makati Med.
MPIC has subscribed to P600 million worth of convertible notes to be issued by Makati Med, equivalent to a 33- percent stake.
Makati Med is issuing a total of P700 million worth of convertible notes. The balance of the notes will be subscribed by the hospital’s existing shareholders which are exercising their pre-emptive rights.
The issue, once completed, will result in MPIC becoming the biggest shareholder of Makati Med.
Makati Med is owned 10 percent by the Fores-Araneta family, five percent by the San Miguel Group, and the balance held by its resident doctors. Total shareholders’ equity currently stands at P1.6 billion.
Proceeds from the convertible note issuance will be used by Makati Med to fund the establishment of a seven-story building that will house a diagnostics center and the improvement of its facilities.