Monday, April 15, 2019

PHINMA’s education arm secures P2-B fresh capital from ADB, Kaizen


Published By Madelaine B. Miraflor

Mumbai-based Kaizen Private Equity II Pte. Ltd. (Kaizen) and the Asian Development Bank (ADB) has acquired as much as 20.28 percent stake at PHINMA Education Holdings, Inc. (PEHI), a subsidiary of publicly-listed PHINMA Corporation (PHN), for nearly P2 billion.
A disclosure in Philippine Stock Exchange (PSE) revealed Friday that the Board of Directors of PHINMA Corporation authorized the signing of the Investment Agreement (Agreement) by and among PEHI, Kaizen, and ADB for a subscription in the total amount of P1.6 billion-worth of newly-issued shares representing 20.28 percent stake in PEHI.
Under the agreement, the new investors are now entitled to two members of the Board. This is out of the eleven seats at PEHI Board of Directors.
“Upon closing of the transaction which is expected on or before September 30, 2019 , subject to the fulfillment of certain closing conditions, PHN will remain as the majority shareholder of PEHI,” PHN told the stock exchange.
Moreover, PHN has waived its rights to subscribe to new shares in PEHI in favor of the investors.
PEHI is the holding company for PHN’s investments in educational institutions. It owns Araullo University (AU), Cagayan de Oro College (COC), University of Pangasinan, University of Iloilo, Southwestern University and St. Jude College.
It also has 50 percent stake in PHINMA Saytanar Education Ltd in Myanmar and has recently signed a joint venture agreement with an Indonesian partner, PT Tripersada Global Manajemen to form Ind-Phil Management Company.
As part of the conditions precedent of the transaction, Philippine Investment Management (PHINMA), Inc. (PHI) will exchange its shares in AU and COC for a 9.06 percent stake in PEHI.
PHN’s interest in PEHI after the entry of investors will be 68.6 percent.

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