Metro Pacific Investments revealed that it has started the process for the planned stake sale of its hospital business. Given that total capital expenditure for its toll road business of ~ Php100Bil for the next 5 years, management said it would need to raise an additional Php40Bil in fresh equity on the MPI parent level (in order to manage its leverage level).
Options for the sale include conducting an IPO or selling a direct stake sale to a buy-out firm or a regional healthcare provider. However, the company said that in order to fetch higher valuation and also due to tax implications, it could also conduct the sale through a dual-track process(conducting an IPO first before selling a stake to a new investor). According to news sources, the projected valuation for the hospital group business is estimated at higher than US$2Bil. The company expects the sale process to be concluded in 4Q19 or 1Q20.