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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