INVESTMENT FIRM ABC Impact is acquiring around 16% of the Ayala group’s healthcare arm Ayala Healthcare Holdings, Inc. (AC Health) to support the latter’s expansion.
ABC Impact, backed by Temasek Trust and investment company Temasek, both headquartered in Singapore, will infuse capital in exchange for a minority stake in AC Health, supporting the healthcare company’s goal of having at least 10 hospitals, 300 clinics, and 1,150 pharmacies across its network by 2027.
The investment marks ABC Impact’s first direct entry into the Philippine healthcare sector.
“This partnership marks a significant milestone in AC Health’s journey. ABC Impact’s investment reinforces the strength of our integrated model and our commitment to making healthcare more inclusive,” AC Health President and Chief Executive Officer (CEO) Paolo Maximo F. Borromeo said in a statement on Monday.
“This partnership creates valuable opportunities for knowledge exchange, technology transfer, and the adoption of global best practices, further enabling AC Health to raise the bar in care quality, patient safety, and operational efficiency as it moves toward world-class standards,” he added.
The investment combines AC Health’s integrated delivery network and ABC Impact’s thematic investing experience in inclusive healthcare solutions.
Some of ABC Impact’s regional investments include Vietnam’s largest private dental care network Kim Dental, India-based dialysis provider DCDC Kidney Care, and clinical research organization HiRo.
“We believe AC Health is well positioned to deliver meaningful social outcomes alongside sustainable growth. Through our regional healthcare experience and impact lens, we aim to support AC Health’s efforts to strengthen systems and serve more communities across the Philippines,” ABC Impact CEO David Heng said.
“We are honored to expand our relationship with Temasek and Temasek Trust, and welcome ABC Impact as a partner in our healthcare journey. Together, we look forward to building a more resilient and inclusive health ecosystem for Filipinos,” AC Health Chairman Fernando Zobel de Ayala said.
BofA Securities served as the exclusive financial advisor to AC Health in connection with the transaction. Completion of ABC Impact’s investment is still subject to closing conditions.
AC Health’s portfolio consists of Healthway Medical Network, a network of multi-specialty clinics, ambulatory centers, and full-service hospitals; Generika Drugstore, a generic retail pharmacy chain; IE Medica and MedEthix, a major pharmaceutical importer and distributor; and St. Joseph Drug, a retail pharmacy chain in North and Central Luzon.
ABC Impact has over $900 million in assets under management. Its portfolio spans climate and water solutions, sustainable food and agriculture, healthcare and education, and financial and digital inclusion. — Revin Mikhael D. Ochave