Ayala Group to sell 100% of KonsultaMD to mWell

The Ayala Group is reportedly selling 100% of KonsultaMD to the Metro Pacific Health Tech Corp. (mWell) [link], which is a subsidiary of the unlisted Metro Pacific Investments Corp. (MPIC). The parties did not disclose a transaction cost or any details on the timing of the sale of closing conditions, other than to say that the Ayala Group would continue to support both KonsultaMD and mWell post-closing. KonsultaMD is an app-based telehealth corporation owned by 917Ventures, the startup incubator subsidiary of Globe [GLO 2280.00, up 0.4%], and boasts 2.7 million users and a large database of doctors and specialists. mWell is also a health and wellness app that reports having 3.1 million users. MPIC said that it will continue to operate the KonsultaMD brand under mWell’s management team.

MB bottom-line: While I’m really interested in the acquisition price, I’m more interested in MPIC’s long-term strategy with mWell. Aside from being burdened with just one of the worst names I’ve ever heard, mWell is going to be the dominant telehealth operator in the Philippines once this transaction is done. Health (especially telehealth) is one of the sectors I’d look at with my middle-class growth thesis, partly because of the margins available for medical services of any kind, but also because of the cross-selling opportunities that could come from operating the country’s default telehealth platform. There are considerable insurance, pharmacy, lab, and woo-woo wellness product opportunities here for a well-managed superapp. Huge opportunities. But can Manny V. Pangilinan seize those opportunities? Readers will know that I’ve lost my confidence in his ability to add value through acquisitions. It feels like he's just out there collecting Pokemons.

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