AC Health acquires majority stake in Cebu Hospital

Ayala Healthcare Holdings Inc. (AC Health) has acquired a majority stake in a Cebu hospital, expanding its presence in the country’s second-largest metropolis.

AC Health on Friday said its provider arm, Healthway Medical Network, had signed an agreement with the Velez family for the 200-bed Cebu Velez General Hospital (CVGH).

“Cebu is an important market for us at AC Health, and we are deeply grateful to the Velez family for their trust and confidence as we work together to build on CVGH’s legacy of excellent health care,” AC Health president and CEO Paolo Borromeo said in a statement.

The Level 3 hospital in Cebu began as a small clinic in 1947 before eventually growing into one of the city’s “most reputable hospitals,” AC Health said.

“Partnering with AC Health allows us to strengthen this legacy while expanding our reach and capabilities,” CVGH assistant administrator James Velez Ting said. “We are excited to be part of AC Health’s growing network and to serve our patients and communities in new and meaningful ways.”

This marks a major milestone for AC Health after it closed an investment from Singapore-based ABC Impact, which committed to subscribe to a 16-percent shareholding in the Zobel family-led company.

Temasek-backed ABC Impact Fund II LP subscribed to 121.9 million common shares and 208.28 million redeemable preferred shares of AC Health early this month. This represents the first tranche of its commitment.

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With the fresh capital, AC Health plans to expand its network to at least 10 hospitals, 300 clinics and 1,150 pharmacies by 2027.

Apart from Healthway, AC Health’s portfolio includes Generika Drugstore, IE Medica, MedEthix and St. Joseph Drug.

AC Health also recently partnered with Indonesian pharmaceutical firm Dexa Group to strengthen the latter’s medicine distribution services in the Philippines.