DEL ROSARIO-LED PHINMA Corp. has received additional funding from global investment company KKR & Co., Inc. to support its education unit.
PHINMA Education Holdings, Inc. has signed an investment agreement with Phoenix Investments II Pte. Ltd. and Rise Edu Pte. Ltd. on May 21, PHINMA Corp. said in a stock exchange disclosure on Wednesday.
The investment agreement covers the issuance of P4.5 billion worth of newly issued shares by PHINMA Education.
Phoenix Investments is an investment vehicle of funds managed by KKR, while Rise Edu Pte. Ltd. is an investment vehicle of funds managed by Kaizenvest, an education-focused private equity fund focused on emerging markets in South and Southeast Asia.
Meanwhile, KKR-managed funds also entered into an agreement to acquire all of PHINMA Education shares owned by Asian Development Bank (ADB), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), and Kaizen Private Equity II Pte. Ltd. (Kaizenvest II), who all invested in the subsidiary in 2019.
PHINMA Corp. currently owns 75.01% of subsidiary PHINMA Education.
“Following completion of the primary transaction and secondary transaction mentioned above, funds managed by KKR and Kaizenvest III will respectively own, directly or indirectly, a 30.67% and 3.73% stake in PHINMA Education,” PHINMA Corp. said.
“Meanwhile, ADB, FMO, and Kaizenvest II will no longer be, directly or indirectly, shareholders of the PHINMA Education,” it added.
The deal is expected to close by the third quarter, subject to the approval of the Philippine Competition Commission. PHINMA Corp. will remain as the majority shareholder of PHINMA Education after the transaction.
“We are fortunate to have an investor of KKR’s quality to help us make the lives of the underserved youth in Southeast Asia better. Their investment will support our ability to scale our systems, enter new markets, and empower our students to achieve the future they want and deserve,” PHINMA Education President and Chief Executive Officer Chito B. Salazar said in a separate statement.
Under the investment agreement, KKR will be entitled to three out of 11 PHINMA Education board seats.
“We will look to leverage KKR’s deep experience investing in education companies globally to support the management team’s vision to scale the company and become a leading education platform across Southeast Asia,” KKR Managing Director and Head of Global Impact for Asia-Pacific George Aitken said.
PHINMA Corp. shares closed unchanged at P20.45 apiece on Wednesday. — Revin Mikhael D. Ochave
