Ayala Healthcare Holdings Inc. (AC Health) on Tuesday said it took in a controlling stake in Mercado General Hospital Inc. (MGHI), which operates the Qualimed brand of hospitals, after it bought the stake of its sister firm and those of the Mercado Group.
In its disclosure, AC Health, through its unit Healthway Philippines Inc., said it has bought the 39.2-percent share of Ayala Land Inc. (ALI) in the hospital group and the 15-percent share of the Mercado Group, composed of Edwin M. Mercado, Ma. Soledad V. Mercado, Edward V.A. Lim, Susan M. Lat, Jose V. Tecson III, Nirmala Barbara S. Vanguardia, Edwin G. Magsino, Diana Kristine L. Carpio, Alma Panganiban-Andal, Prescilla T. Molinyawe, Nerissa M. Austria, Zosimo C. Malabanan and Menandro A. Villadelgado.
The subsidiary of conglomerate Ayala Corp. will also subscribe to 38.25 million cumulative, redeemable and non-participating preferred shares from White Knight and Mercado Group equivalent to 34.51 percent of the outstanding capital stock of shares of MGHI. This will bring Healthway’s voting interest in the hospital group to 70 percent. White Knight is the vehicle used by Ayala Land to buy into Qualimed.
The companies declined to give the amount of the acquisition but Ayala Land said the “pricing was based on comparable market multiples, discounted cash flow methodology and other relevant financial metrics.”
“Cash generated from the transaction can be used by ALI for its operations,” it said.
The addition of Qualimed expands the AC Health clinic and hospital portfolio, housed under Healthway, which includes all family, specialty and corporate clinics, which earlier this year were integrated under one Healthway brand.
AC Health will now have four general hospitals, more than 85 outpatient clinics and about 80 corporate clinics, as well as the country’s first cancer specialty hospital which the company announced previously.
“We have always believed in Qualimed’s vision to deliver accessible and affordable healthcare to Filipinos. Over the past few years, we have built a strong partnership between Qualimed and Ayala Land and we are delighted to integrate Qualimed into AC Health’s growing portfolio. The Covid-19 pandemic has renewed the Ayala Group’s commitment to invest in healthcare, and with this investment, we will be better positioned to provide much-needed healthcare services for the country,” Fernando Zobel de Ayala, chairman of AC Health, said.
Qualimed includes four hospitals in Nuvali in Sta. Rosa, San Jose Del Monte in Bulacan, Iloilo City and Daniel O. Mercado Medical Center in Tanauan, Batangas.
In addition, Qualimed also operates an ambulatory surgical center in UP-PGH, and has clinics in Makati, Quezon City and in Cebu IT Park.
“With the addition of the Qualimed Health Network, AC Health now completes the entire continuum of patient care, from primary clinics, multi-specialty care and now to hospital care. We have taken a deliberate approach to building up our healthcare ecosystem, with the goal of delivering an integrated patient experience for more Filipinos,” AC Health president and CEO Paolo Borromeo said.
Edwin Mercado, president and CEO of Qualimed Health Network, said their partnership with AC Health to upgrade its hospitals and build Covid-19 laboratories allowed Qualimed to serve thousands of patients across its network during this pandemic.
“It is this collaborative spirit that will ensure Qualimed’s continued growth during these challenging times. Qualimed has always endeavored to make healthcare more accessible, and we hope this partnership will allow us to accelerate that vision even further.”