Abraaj exits Filipino hospital investment
Dubai, September 23, 2013
Dubai-based Abraaj Group, a leading investor operating in growth markets, has announced a full exit from its investment in Daniel O. Mercado Medical Center (DMMC), a leading tertiary medical hospital based in the Philippines.
Abraaj, through one of its funds, had invested in DMMC in September 2010 as the only institutional investor alongside the Mercado family, said a statement from the Dubai group.
With Abraaj’s support and funding, DMMC constructed the Mercado Ambulatory and Surgical Center (MASCI), a hitech diagnostic and outpatient facility, it stated.
As a result, DMMC was able to expand its market reach, service offering and patient numbers, with its outpatient census increasing by 19.5 per cent in 2012. In MASCI, outpatient census grew by 41.1 per cent, with outpatient surgical procedures growing 99.1 per cent last year compared to 2011, the company said in its statement.
Commenting on the exit, Danny Lizares, the MD and country head for Philippines, said: "This was an attractive investment opportunity for Abraaj to make in a growing sector where demand for beds far outweighed supply, with the potential to support a highly-experienced management team and scale a well-established, multi-credited hospital."
"We succeeded in our aim to further facilitate the provision of quality healthcare for the mass market, offering state-of-the-art medical services at competitive prices. We wish DMMC all the best for the future and believe they are now well positioned to continue their growth trajectory," he added.
Abraaj's exit was executed through a buyback arrangement with the Mercado family.
In the South East Asia region, Abraaj has recently exited other businesses in the healthcare sector – Vejthani Hospital and IHH Healthcare, which was the third largest IPO globally at the time in 2012.
In the Philippines, Abraaj currently has two investments – Pancake House, a fast, casual dining chain and HBC, a leading retailer of beauty and personal care products – having exited others over the last two years.-TradeArabia News Service