The International Finance Corporation (IFC), the private investment arm of the World Bank Group, has proposed to extend debt financing of up to $40 million to Fullerton Health Philippines Holdings Corp (FHPC) to support its acquisitions.
FHPC, a wholly owned subsidiary of Singapore-based Fullerton Healthcare Corporation, is acquiring a 60 per cent controlling stake in the Intellicare group of companies, a leading health maintenance organisation (HMO) company in the Philippines, with a membership base of over one million lives.
In its disclosure, IFC said, FHPC plans to establish a vertically integrated managed healthcare platform in the Philippines that will comprise Intellicare, as well as the rollout and acquisition of related healthcare providers.
As part of the proposed loan, the IFC said, it will share best practices in different areas of operations, including facilitating introductions within its network of healthcare clients.
“IFC’s long-term investment horizon suits the cash generation profile of FHPC, and the company values IFC’s intention to remain as a long-term investor,” IFC said.
The Philippines is an important market in Asia Pacific for Fullerton Health, underpinned by attractive growth drivers. Its acquisition of Intellicare is subject to the fulfillment of certain conditions and is expected to complete in early 2018
The Intellicare Group comprises three companies: Asalus, an HMO engaged in the delivery of managed healthcare services; Avega, a provider of third-party administration services to corporates; and Aventus, a chain of nine outpatient multi-specialty clinics.
In a statement announcing the proposed acquisition in December, Michael Tan, co-founder and group CEO of Fullerton Health, said the acquisition, which takes the company into its eighth country in Asia Pacific, reinforces its strategy of developing a strong presence in markets across the region.
“With a population of over 100 million people, the Philippines offers great growth potential for the company, and the potential synergies between our two businesses, together with our operational and technological capabilities, will allow us to deliver increased benefits and services to even more corporates and patients across the country,” Tan said.