MPIC completes purchase of 51% of Bacolod hospital

MANILA, Philippines - Metro Pacific Investments Corp. (MPIC), the local flagship of Hong Kong-based conglomerate First Pacific Co. Ltd., said yesterday it has completed the purchase of a 51-percent stake in Riverside Medical Center Inc. (RMCI), the largest hospital in Bacolod City, Negros Occidental.

MPIC purchased its shares in the 336-bed hospital from Torre Hermanos Agro-Industrial Enterprises Inc.

Founded by Pablo O. Torre, RMCI started as an eight-bed clinic in 1954 and has since expanded with medical departments comprising obstetrics and gynecology, medicine, orthopedics, ENT, pediatrics, emergency medicine, pathology, physical medicine and rehabilitation, imaging sciences, anesthesia, surgery and opthalmology.

The purchase, which was in line with MPIC’s bid to build the first nationwide chain of premiere hospitals in the country, brings the group’s total number of healthcare centers to four with a total capacity of over 1,300 beds.

With the acquisition, MPIC chairman Manuel V. Pangilinan will assume the chairmanship of RMCI while Dr. Hector L. Torre was appointed chairman emeritus of the hospital.

The three other medical centers in MPIC’s portfolio include Makati Medical Center and Cardinal Santos Medical Center in Metro Manila and Davao Doctors Hospital in Mindanao.

The deal also includes the purchase of RMCI’s wholly-owned unit Riverside College Inc., a nursing school with 2,800 students.

For the fiscal year that ended May 31, 2009, RMCI registered consolidated revenues of P940 million and an asset base of P911 million as against liabilities of P553 million.

MPIC is expected to perform better this year given the full year earnings contribution from power utility giant Manila Electric Co. and the steady strong performance across all its business units. Core net income is forecast to hit above the P2 billion recorded in 2009.

The group continues to be on the lookout for possible acquisitions that will help expand revenue streams, further strengthen its operations and prepare it for a much solid platform for growth.