Private equity firms KKR & Co., Blackstone Group Inc. and CVC Capital Partners Ltd. are among the more than six investors who have submitted first-round indicative bids for a 40% stake in Metro Pacific Investments Corp.'s hospital unit, Reuters reported, citing people with knowledge of the matter.
The Philippine-based conglomerate plans to sell the stake in Metro Pacific Hospitals at a valuation of between $2 billion and $2.5 billion, but the bidders are valuing the hospital group at between about $1.5 billion to $2 billion, or between 15x to 20x its estimated core profit for 2020, the people told Reuters. Metro Pacific Investments owns 85.6% of Metro Pacific Hospitals.
The unit, which operates 14 hospitals and a network of primary care clinics and cancer centers, also attracted interest from other financial and strategic investors, according to the sources, with one source saying Singapore state investor Temasek Holdings (Pte.) Ltd. is among the interested parties.
KKR, Blackstone, CVC, Temasek and Metro Pacific Investments declined to comment, the newswire added.