KKR & GIC to Exit $3.2 Bn Stake in Metro Pacific Health

According to sources familiar with the matter, this potential deal is expected to value the healthcare group at approximately $3.2 billion.

Global investment firm KKR and Singapore's sovereign wealth fund GIC have hired Bank of America, Jefferies, and UBS to oversee the sale of their combined 80% stake in Metro Pacific Health, the Philippines' largest private healthcare provider. 

According to sources familiar with the matter, this potential deal is expected to value the healthcare group at approximately $3.2 billion.

According to individuals who know the process, the sale could begin as early as the fourth quarter of 2024 or the first quarter of 2025. 

"The move is in its preparatory stages, but it could start before the end of the year," one of the sources said, underlining that the companies are actively working towards finalizing the transaction. 

Metro Pacific Health is co-owned by KKR and GIC, which acquired the majority stake in 2019 for $680 million. 

According to its corporate website, Philippine-based infrastructure group Metro Pacific Investments Corp (MPI) holds the remaining 20% stake.

At this stage, we cannot comment until the transaction reaches completion," a spokesperson for MPI said.

While KKR and GIC's decision to sell their stake in Metro Pacific Health indicates a shift in strategy, the exact motivations behind the move remain undisclosed. However, some speculate this could be part of a broader realignment of the investors' portfolios.

KKR & GIC’s Investment History

KKR and GIC first invested in Metro Pacific Health in 2019, jointly contributing $680 million to acquire their 80% stake in the company. 

The investment at that time was seen as a long-term bet on the growth of private healthcare in the Philippines, a market that has shown significant expansion in recent years due to increasing demand for high-quality medical services. 

This latest development marks a notable shift in ownership structure for Metro Pacific Health, which has continued to expand its reach since the original acquisition. 

With the backing of global investment firms, the healthcare group has enhanced its facilities and services, cementing its position as a leader in the country’s healthcare space.

Though the sale process is still in the early stages, industry insiders are keenly watching for potential buyers. The sale of such a significant stake in the Philippines' largest private healthcare group is expected to attract both local and international interest, especially given Metro Pacific Health's established reputation and extensive infrastructure. 

The future ownership structure of Metro Pacific Health remains unclear, but the transaction could usher in new strategies and investment plans for the healthcare group. 

For now, stakeholders and market observers will be closely monitoring developments as the deal progresses.

Founded in 2007, Metro Pacific Health has become a dominant player in the Philippines' private healthcare sector. The group operates 24 hospitals, including prominent institutions such as Makati Medical Center and Davao Doctors Hospital. 

Additionally, Metro Pacific Health manages 31 outpatient care centers, six cancer care centers, two allied health colleges, and a centralized laboratory.

This extensive network makes Metro Pacific Health the largest hospital operator in the Philippines, catering to various healthcare needs nationwide. 

"Metro Pacific Health’s significant footprint in healthcare has positioned it as an essential provider in the Philippines," one of the sources added.

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