The Board of Directors of PHINMA Corporation (PSE: PHN) on Thursday approved the plan to purchase common shares owned by its parent, PHINMA Inc., in the group’s operating companies for ₱2.3 billion. This will lead to the consolidation of the group’s strategic business units under PHINMA Corporation while providing a vehicle to expand these core and emerging businesses.
The acquisition of the investments held by PHINMA Inc. would increase PHINMA Corporation’s ownership in the group’s education, property development, and hospitality businesses. This would expand PHINMA Corporation’s exposure to these high-growth sectors, improve the conglomerate’s diversification, and provide a more streamlined avenue to leverage synergies across the group going forward.
PHINMA’s Education group has achieved strong growth since its inception in 2004 and is now the country’s largest tertiary education network with 124,501 students enrolled for the school year 2022-2023. PHINMA Education Holdings, Inc. holds the PHINMA group’s investment in nine tertiary education schools in the Philippines as well as the Horizon Education tertiary institution brand in Indonesia. The Hospitality group, which owns/franchises and manages all 15 Microtel and TRYP hotels across the country, is capitalizing on the resurgence of tourism and economic activity that is expected to continue since tourism is a key component of Philippine economic growth. Meanwhile, the group’s Property Development arm has exciting plans to utilize its competitive advantages to provide homes to underserved markets outside Metro Manila while also allowing the group to leverage synergies across its business units, effectively widening the reach of PHINMA’s mission of making lives better.
“Consolidating our investments into 1PHINMA will bolster the Group’s robust growth trajectory and will allow us to make more lives better. PHINMA Corporation, as a listed company, is a platform that can be used to expand our businesses,” said PHINMA Chairman and CEO Ramon R. del Rosario, Jr.
“As we continue to grow, PHINMA Corporation will capitalize on our distinctive advantages and our drive to provide the essentials of a dignified life for Filipinos. Our core values and our mission are the guiding principles behind our portfolio decisions and we believe that moving forward as 1PHINMA will enable us to positively impact more communities and provide better returns to all of our stakeholders,” he said.
Under the transaction, PHINMA Corporation will purchase the following assets from PHINMA
