Warburg Pincus and CVC compete for $3bn stake in Philippines’ largest private hospital group

Global private equity firms Warburg Pincus, CVC Capital Partners, and TPG are vying to acquire a stake in Metro Pacific Hospital Holdings, the largest private hospital operator in the Philippines.

The transaction, estimated at $3bn, highlights growing private equity interest in Southeast Asia’s expanding healthcare market. The sale process, initiated last year by a KKR-led consortium, has also attracted several long-only funds.

KKR and Singapore’s sovereign wealth fund GIC currently own 80% of Metro Pacific Hospital, with the remaining 20% held by Metro Pacific Investments Corp (MPIC), a Philippine conglomerate. Reports indicate that KKR is also in discussions with MPIC about its potential involvement in the stake sale.

Metro Pacific Hospital manages over 25 hospitals with 4,500 beds and operates a network of primary care clinics, cancer centres, and other healthcare services across Southeast Asia. KKR and GIC initially invested $680m in the company in 2019 to fund its expansion and reduce MPIC’s debt.

The healthcare sector in Southeast Asia has seen significant activity recently. IHH Healthcare acquired Malaysia’s Island Hospital for $900m, while Mitsui & Co. and Rohto Pharmaceutical purchased Singapore-based Eu Yan Sang International for $600m. Earlier this month, CVC Capital Partners expressed interest in acquiring Indonesian hospital assets from First Real Estate Investment Trust.

This potential sale of Metro Pacific Hospital marks another milestone in the growing demand for quality healthcare in the region, as private equity firms and institutional investors seek to capitalise on the sector’s expansion opportunities.

Source: Futubull

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