Phinma Corp, a listed holding firm in the Philippines, has announced that the Asian Development Bank (ADB) education sector-focused private equity firm Kaizen Private Equity have taken a 20.28 per cent stake in its education unit for P1.63 billion ($31.5 million).
In a disclosure to the Philippine Stock Exchange (PSE), Phinma said its board authorised the signing of an investment agreement by its unit Phina Education Holdings, ADB, and the Indian PE firm for the acquisition of newly issued shares.
The two new investors will also be inducted into Phinma’s board of directors. The listed firm waived its rights to subscribe to new shares in Phinma Educaiton in favor of the investors.
Phinma will remain the majority stakeholder of Phinma Education with 68.6-per cent interest, upon closing of the transaction which is expected on or before September 30, 2019.
The deal is still subject to certain conditions and approvals, Phinma said in its stock exchange filing.
Phinma Education is the holding company for Phinma’s investments in educational institutions. The unit owns Araullo University, Cagayan de Oro College, University of Pangasinan, University of Iloilo, Southwestern University, and St. Jude College.
It also has a 50-per cent stake in Phinma Saytanar Education Ltd. in Myanmar.
Last February, Phinma Education signed an agreement with Indonesia’s Tripersada Global Manajemen to form PT Ind-Phil Management Co. Phinma invested P278 million (P5.38 million) for a 66-per cent stake in the joint venture that will hold and manage tertiary institutions for Yayasan Triputra Persada Horizon Education.