Del Rosario-led PHINMA Corporation (PHN) completed the acquisition of 100 percent of PHINMA Insurance Brokers Inc. (PIBI) from PHINMA Inc. for P150.53 million.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said it bought all the 2.3 million PIBI shares of PHINMA.
PIBI is the insurance brokerage arm of PHINMA, involved in developing, packaging and servicing life, non-life and HMO insurance programs while dealing with reputable local and global insurance companies to answer its clients’ various requirements.
Since 1974, PIBI has gained its risk management expertise through its exposure to diverse business interests such as steel, cement, housing, condominiums, power generations/power plants, wires and cables, oil rigs, schools and hotels.
Over the years, PIBI has developed strong relationships with its principal, who in turn, provide competitive pricing, speedy and fair claim settlements, professional advice and other advantages that benefit clients.
PHINMA is embarking on the simultaneous expansion of its core businesses after successfully raising P1 billion from its stock rights offering on top of a P4.5 billion cash infusion by global investment firm KKR into its education unit.
According to PHINMA Chairman and CEO Ramon R. del Rosario, PHINMA Education Holdings Inc. has just acquired a school in Cavite last week with 3,000 students--raising the group’s total number of students to 167,000.
He noted that, many of the 3,000 students are the first in their families to go to college. Funding for the acquisition was drawn the investment of leading global private equity firm KKR.
“We hope to replicate this success story with our other business units, whom we've challenged to more directly address the needs of our target market, beginning with housing,” Del Rosario said.
Thus, a significant amount of the SRO proceeds, P200 million, will finance projects of PHINMA Properties in emerging cities outside Metro Manila, such as Bacolod, Cebu and Davao.
“These projects will allow us to fulfill the housing aspirations of low to middle income Filipinos,” he added.
PHINMA Properties broke ground last July on its first ever mixed-use masterplanned, 20-hectare township in Bacolod City.
Del Rosario said, “the township will also feature a branch of its Southwestern PHINMA University, as well as a TRYP by Wyndhamhotel to serve business and leisure travelers seeking comfortable, world-class lodging.”
PHINMA is investing P250 million from the SRO proceeds for the 150-room hotel which may cost up to P750 million to build.
To support the government's infrastructure push, Del Rosario said the group will use P170 million of the SRO proceeds to fund nearly 60 projects that PHINMA solar secured from the Green Energy Auction program, as well as P114 million to construct a modern cement manufacturing facility in Davao Del Norte that can produce two million metric tons annually.
It is also investing P114 million for the construction of Philcement Corporation's modern cement manufacturing facility in Davao del Norte that can produce two million metric tons annually.
About P210 million of the proceeds will head to the group's new venture, Union Insulated Panel Corporation’s new state of the art facility in Pampanga with a yearly production capacity of one million square meters.
Meanwhile, P239.56 million will be used for investments in areas of socialized housing, food security, healthcare, and the green industry, along with general corporate purposes.