AC Health acquires 70% stake in Qualimed Health Network operator

Ayala Corporation's healthcare arm Ayala Healthcare Holdings Inc. (AC Health) has inked executive agreements to acquire a majority economic interest in Mercado General Hospital Inc. (MGHI), which owns the Qualimed Health Network.

In an emailed statement, AC Health said its wholly-owned subsidiary Healthway will acquire a 70% economic stake in MGHI from several shareholders, the biggest coming from White Knight Holdings Inc., equivalent to 39.2% of the outstanding capital stock of MGHI.

Healthway will also purchase 15% of the outstanding capital shares or 10,887,842 common shares of MGHI from the Mercado Group, made up of Dr. Edwin M. Mercado, Ma. Soledad V. Mercado, Dr. Edward V.A. Lim, Susan M. Lat, Dr. Jose V. Tecson III, Atty. Nirmala Barbara S. Vanguardia, Edwin G. Magsino, Diana Kristine L. Carpio, Dr. Alma Panganiban-Andal, Prescilla T. Molinyawe, Nerissa M. Austria, Zosimo C. Malabanan, and Dr. Menandro A. Villadelgado.

Healthway will also subscribe to 38,250,000 cumulative, redeemable, and non-participating preferred shares from White Knight and the Mercado Group equivalent to 34.51%, bringing its voting interest in MGHI to 70%.

The agreements were inked on Monday, December 21, 2020. The company did not provide details on the transaction costs.

"We have always believed in Qualimed’s vision to deliver accessible and affordable healthcare to Filipinos. Over the past few years, we have built a strong partnership between Qualimed and Ayala Land and we are delighted to integrate Qualimed into AC Health’s growing portfolio," said Fernando Zobel de Ayala, chairman of the board of AC Health.

"The COVID-19 pandemic has renewed the Ayala Group’s commitment to invest in healthcare, and with this investment, we will be better positioned to provide much-needed healthcare services for the country," he added.

With the acquisition, AC Health will have four general hospitals, over 85 outpatient clinics, and some 80 corporate clinics including the country's first cancer specialty hospital.

This comes as the Qualimed Health Network includes four hospitals — Qualimed Sta. Rosa located in Nuvali; Qualimed San Jose Del Monte in Bulacan; Qualimed Iloilo in Iloilo City; and Daniel O. Mercado Medical Center in Tanauan, Batangas.

Qualimed also operates and ambulatory surgical center in UP-PGH, and has clinics in Makati, Quezon City, and the Cebu IT Park.

"With the addition of the Qualimed Health Network, AC Health now completes the entire continuum of patient care, from primary clinics, multi-specialty care and now to hospital care," said AC Health president and chief executive officer Paolo Borromeo. 

"We have taken a deliberate approach to building up our healthcare ecosystem, with the goal of delivering an integrated patient experience for more Filipinos. In addition to expanding our touchpoints, we are also excited about creating unique synergies in our network, such as patient referrals, expanded opportunities for our medical professionals, and greater operational efficiencies on pharmacy and diagnostics," he added. —KG, GMA News