Conglomerate Metro Pacific Investments Corp. has asked the Securities and Exchange Commission to extend for one month the tender offer on the remaining shares it does not own in the 315-bed Davao Doctors Hospital.
Metro Pacific Hospital Holdings Inc. president Augusto Palisoc said it sought the extension until Dec. 19, 2015 to give the shareholders of Davao Doctors more time to review the offer.
“We have 2,700 shareholders for Davao Doctors and we got word that a lot of the shareholders have not received the tender offer materials. There are also some shareholders who want more time to consider the offer as well as to put together the documents they have to collate in order to proceed with the offer,” Palisoc said.
The tender offer was scheduled to end on Nov 19, 2015. “We are now awaiting the SEC approval for the extension,” Palisoc said.
Metro Pacific Hospital currently owns 313,655 shares representing 34.82 percent of the outstanding capital stock of Davao Doctors. It has offered to acquire the remaining 65.18 percent stake in the hospital under a tiered-pricing scheme.
If Metro Pacific Hospital acquires less than 136,747 Davao Doctors shares, the purchase price under the proposal will be fixed at P2,300 per share. But if as a result of the tender offer Metro Pacific Hospital buys at least 136,747 shares but less than 286,881 shares, the purchase price will be pegged at P2,600.00 apiece.
Metro Pacific Hospital first invested in Davao Doctors in 2008 when it acquired the shares at P1,600 apiece. Since its entry, Davao Doctor’s profits and revenues have increased significantly.
From profits of P130 million, Davao Doctor’s income now stands at P190 million, while revenues hit over P1 billion from P700 million when the Metro Pacific Hospital bought in.
Metro Pacific operates and manages nine hospitals under its portfolio. Aside from Davao Doctors, it operates Western Mindanao Medical Center in Zamboanga City, Makati Medical Center, Asian Hospital & Medical Center, Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, De Los Santos Medical Center, Riverside Medical Center in Bacolod and Central Luzon Doctors Hospital in Tarlac.
Metro Pacific Hospital early this month announced it planned to purchase a 20-percent stake in Manila Doctors Hospital located along United Nations Avenue, Ermita, Manila.
It also signed an agreement with Southwestern University for a possible joint venture to modernize the latter’s 100-bed training hospital in Cebu.