Investment firm KKR Singapore Pvt Ltd. is taking a significant stake in Phinma Education Holdings Inc., which operates schools in the Philippines and Indonesia.
The transaction involves separate deals requiring existing shareholders to exit Phinma Education.
Phinma Education has signed an investment agreement with Phoenix Investments II Pte. Ltd., an investment vehicle managed by KKR and Rise Edu Pte. Ltd., also an investment vehicle managed by Kaizenvest (Kaizenvest III), an education-focused private equity fund focused on emerging markets in South and South-East Asia.
The agreement requires Phinma Education to issue new shares worth P4.5 billion.
The KKR managed funds, meanwhile, have agreed to acquire all the shares owned, directly or indirectly, by the Asian Development Bank, the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) and Kaizen Private Equity II Pte. Ltd. (Kaizenvest II), who all invested in the company in 2019.
When completed, KKR will own 30.67 percent of the company and Kaizenvest III with 3.73 percent. The ADB, FMO and Kaizenvest II will cease to be shareholders of the company.
Under the investment agreement, KKR is entitled to three of 11 board seats in Phinma Education.
“Upon closing of the transactions mentioned above, which are subject to the fulfillment of certain closing conditions including clearance by the Philippine Competition Commission, Phinma Corp. will remain as the majority shareholder of the company,” Phinma said.
Phinma has waived its rights to the offering pursuant to the investment agreement.
“Phinma Education’s mission of delivering quality, affordable education to underserved communities aligns strongly with our global impact strategy. We will look to leverage KKR’s deep experience investing in education companies globally to support the management team’s vision to scale the company and become a leading education platform across Southeast Asia,” George Aitken, managing director and head of global impact for Asia Pacific at KKR, said.
“When Phinma first entered the education business two decades ago, we wanted to help improve the lives of young Filipinos in need and in turn, their families. Our commitment to this mission remains steadfast to this day. This collaboration between PHINMA Education and KKR, a like-minded strategic partner, puts us in a better position to serve and uplift the youth of the Philippines and Southeast Asia,” Ramon R. del Rosario Jr., Phinma chairman and CEO, said.
The transaction is expected to close in the third quarter, subject to PCC approval.
