Global investment firm KKR & Co. Inc. has postponed plans to sell its stake in Metro Pacific Health Corp. (MPH), the Philippines’ largest hospital group, due to uncertainties caused by the ongoing Middle East conflict.
Businessman Manuel V. Pangilinan, chairman of Metro Pacific Investments Corp. (MPIC), said the sale has been put on hold as KKR is unwilling to proceed unless it achieves its target valuation. He noted that current global conditions make it difficult to secure the desired price.
Despite the delay, Pangilinan sees an opportunity for expansion, saying the group can continue acquiring hospitals as demand for healthcare remains strong.
KKR and its partner GIC invested about ₱35.3 billion in MPH in 2019, gaining around 80 percent ownership. The hospital network now includes 27 hospitals, 33 outpatient centers, two health colleges, and a central laboratory nationwide.
Founded in 2007, MPH began with the acquisition of Makati Medical Center and has aimed to grow by buying two to three hospitals annually. Expansion slowed during the COVID-19 pandemic but has since resumed.
Pangilinan said KKR may need to stay invested longer to grow the business further before selling at its preferred price.
Meanwhile, MPIC has offered to buy an additional 30 percent stake in MPH from KKR, signaling its continued interest in increasing ownership of the hospital group.
