Global private equity major KKR has agreed to acquire a stake in Philippine-based higher education group PHINMA Education, the education arm of listed conglomerate PHINMA Group.
The announcement released by KKR said the PE giant will invest from its Global Impact Fund II, a fund that targets companies whose core business contributes towards one or more of the United Nations Sustainable Development Goals (SDGs).
PHINMA Education contributes towards SDG 4 (Quality Education).
The investment activity is also participated by existing shareholder Kaizenvest, which invested in PHINMA Education in 2019 through Kaizen Private Equity II Pte. Ltd. (Kaizenvest II).
In a separate disclosure to the Philippine Stock Exchange, PHINMA Group said the agreement was signed on May 21, with PHINMA Education agreeing to issue P4.5 billion worth of new shares.
Concurrently, funds managed by KKR have entered into an agreement to acquire all of the shares in PHINMA Education owned, directly or indirectly, 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 company in 2019.
Following the transactions, funds managed by KKR and Kaizenvest III will respectively own, directly or indirectly, a 30.67% and 3.73% stake in the company. Meanwhile, ADB, FMO, and Kaizenvest II will no longer be, directly or indirectly, shareholders of PHINMA Education.
PHINMA Corporation will remain the majority shareholder of the company.
“The signing of the Investment Agreement follows the approval of the Executive Committee on May 13, 2024, upon authority granted by the Board of Directors of PHINMA Corporation during its meeting held on April 23, 2024,” according to the disclosure.
Ramon R. del Rosario, Jr., Chairman and Chief Executive Officer of PHINMA Corporation, said the collaboration between PHINMA Education and KKR puts the company in a better position to serve and uplift the youth of the Philippines and Southeast Asia.
PHINMA Education started operating in the education services sector in 2004 through the acquisition of PHINMA Araullo University in Nueva Ecija.
It has since expanded its presence across the Philippines, serving more than 150,000 students across a school network, which includes PHINMA Cagayan de Oro College, PHINMA University of Pangasinan, PHINMA University of Iloilo, Southwestern University PHINMA in Cebu City, PHINMA Saint Jude College in Manila, PHINMA Republican College in Quezon City, PHINMA Rizal College of Laguna, and PHINMA Union College of Laguna.