Dutch firm, Kaizen infuse P1.575 billion into Phinma unit

Phinma Corp. said Friday Kaizen Private Equity II Pte. Ltd. (Kaizen), Netherlands Development Finance Company (FMO) and two local investors infused P1.575 billion into education unit Phinma Education Holdings Inc.

PHN in a disclosure to the stock exchange confirmed the initial closing of the investment transaction with education sector-focused private equity Kaizen and FMO after receiving the investment amount of P1.25 billion. 

Local investors Emar Corp. and Dr. Magdaleno Albarracin Jr. also completed remittance of their P325-million investment.

“The remittances total P1.575 billion and will be used to support further growth of the business,” PHN said.

The company has yet to receive an investment from Asian Development Bank.

Based on the amended  and restated investment agreement signed on October 7, Kaizen, ADB and FMO will subscribe to shares of stock of PEHI worth P1.875 billion, representing a 19.14-percent stake in PEHI.

PHN, the controlling stockholder of PEHI which waived its pre-emptive right to subscribe to the new shares, will remain the majority shareholder of PEHI after the private placement, with an ownership equivalent to 71.83 percent of PEHI.

PEHI is the holding company for Phinma’s investments in educational institutions. 

It owns Araullo University, Cagayan de Oro College, University of Pangasinan, University of Iloilo, Southwestern University and St. Jude College. It has a 50-percent stake in PHINMA Saytanar Education Ltd. in Myanmar.

PEHI earlier recently signed a joint venture agreement with an Indonesian partner, PT Tripersada Global Manajemen, to form Ind-Phil Management Co.

Under the joint venture agreement, PEHI and Tripersada Global Manajemen will form PT Ind Phil Managemen, which will manage tertiary institutions for Yayasan Triputra Persada Horizon Education, with the first in West Java, Indonesia.

The investment marks PEHI’s entry into Indonesia in line with its regional strategy.

Indonesia, with a population of over 260 million, provides the company with a new market to serve and a new source of income.