Milbank, Tweed, Hadley & McCloy LLP advised the private equity arm of GIC in a pair of Philippines investments worth a total of approximately US$310 million (S$384 million, Php13.6 billion).
Singapore-based partner Jacqueline Chan led the Milbank team on both transactions.
In the first transaction, GIC, through its private equity arm made an approximately US$77 million investment, in the form of an exchangeable loan, in Century Canning Corp., parent company to one of the Philippines’ largest producers of canned fish and meat and dairy products, Century Pacific Food (CNPF). The investment is exchangeable for shares of CNPF that would give GIC a roughly 11% stake in the company. Loan proceeds, and CNPF’s recently completed IPO, are expected to support expansion or acquisition goals taking advantage of the Philippines’ expanding economy.
The second GIC transaction comprised an approximately US$84 million investment in Philippine hospital group Metro Pacific Investment Corporation (MPIC), which is seeking to expand beyond its current ownership of eight hospitals nationwide. Through its private equity arm, GIC will receive a 14.4% stake in the holding company established by MPIC for its hospital assets, Neptune Stroika Holdings Inc (Neptune). Additionally, GIC agreed to provide MPIC an approximately US$149 million exchangeable bond, which in the future will be convertible, under certain conditions, into a 25.5% stake in Neptune.
Milbank’s Ms. Chan said, “Singapore’s GIC is one of world’s leading sovereign funds and GIC’s private equity arm is known for its strategic, long-term investments in East and Southeast Asia. These latest commitments by GIC demonstrate its faith in the stability of Philippine fundamentals and the growth prospects of the economy as a whole. Milbank is very pleased to play a role in bringing these investments to fruition.”
GIC, established in 1981, has well over US$100 billion in assets under management. In private equity, GIC invests through funds as well as directly in companies, partnering with fund managers and management teams to help world class businesses achieve their objectives.
Milbank senior associate Adrian Yeo and associate Nadhapreuk Jirasarunya in Singapore assisted on the CNPF and MPIC transactions.
Milbank has one of the strongest international law practices in Southeast Asia, having been representing clients in a range of transactions in the region for over three decades. Our leading M&A/Private Equity team assists clients doing business in the Philippines structure, negotiate and consummate complicated, cutting-edge merger and acquisition transactions of public and private targets. Our other recent private equity representations in the Philippines include that of Capital Group in separate transactions in the media and BPO space, Alfamart in its joint venture arrangements in the Philippines, Northstar Equity Partners in its equity investment in Philippines Bank of Communications, and the sellers of a substantial stake in Carmen Copper to Atlas Consolidated Mining and Development Corp. of the Philippines. Our broad range of experience has given us an in-depth understanding of Philippine legal, business and cultural practices, as well as specialist expertise to advise on a diverse range of transactions.