Milbank LLP advised Metro Pacific Investments Corporation ("MPIC") and Singapore Sovereign wealth fund GIC Private Limited (“GIC”) in connection with its disposition of interests in Metro Pacific Hospital Holdings, Inc. (“MPHHI”), the Philippines’ largest hospital chain, to a consortium of investors led by global investment firm KKR & Co. Inc (“KKR”). The transaction, valued at approximately US$685 million, marks one of the biggest equity investments by a private equity group to take place in Southeast Asia this year.
As part of the sale, GIC will restructure its current stake in MPHHI and join the KKR consortium in acquiring a 6.25% stake in MPHHI for approximately US$100 million. The KKR-led consortium will also invest in approximately US$580 million of mandatorily exchangeable bonds issued by MPIC.
The Milbank team based in Singapore and Hong Kong was led by partners Jacqueline Chan and Jim Grandolfo with counsel Paul Pery, associates Cheyne Cudby, Stephanie Kam and Min Kim and legal assistant Gabby Wong assisting.
Ms. Chan said: “We are thrilled to have played a major part in the success of this landmark transaction, which speaks to the strong private equity investment focus we are seeing in Southeast Asia’s private healthcare market. As investor interest continues to accelerate in the region, we look forward to further strengthening our reputation as one of the top legal advisors for complex, multifaceted acquisitions in Southeast Asia.”
Mr. Grandolfo said: “This transaction demonstrates how international investors outside the Philippines are continuing to take advantage of opportunities for investment in the country which will again have one of the best performing economies in Asia and globally in 2019. The transaction is another major success for a long-time Milbank client and indicates Milbank’s preeminent position advising corporates and investors in the growing Philippine M&A space.”
