Temasek-backed impact investor ABC Impact is acquiring a 16% minority stake in AC Health, the healthcare arm of the Philippines’ oldest conglomerate, Ayala Corp, according to a disclosure.
Singapore-based ABC Impact will provide primary capital to support AC Health’s expansion plans across the Philippines. The deal marks the firm’s entry into the country’s healthcare sector, per the announcement.
AC Health did not specify a value for the 16% stake.
The fresh capital, according to AC Health, will fuel its aggressive expansion across three core areas: hospitals, multi-specialty clinics, and retail pharmacies.
The company plans to grow its network to at least 10 hospitals, 300 clinics, and 1,150 pharmacies by 2027 through organic growth and targeted acquisitions. The company aims to become a $2-billion healthcare enterprise by 2035.
AC Health currently operates hospitals and clinics through its Healthway Medical Network, which consists of 236 corporate and multi-specialty clinics and six hospitals.
Established in 2015, AC Health has expanded its portfolio to include the Generika and St. Joseph Drug pharmacy chains, as well as pharmaceutical importer and distributor IE Medica and MedEthix, according to its websites.
“This partnership marks a significant milestone in AC Health’s journey,” said Paolo Borromeo, president and CEO of AC Health. “ABC Impact’s investment reinforces the strength of our integrated model and our commitment to making healthcare more inclusive.”
ABC Impact brings regional healthcare expertise to the partnership, with existing investments across India, China, and Vietnam, according to the disclosure.
The firm’s portfolio includes Vietnam’s largest private dental network Kim Dental, Indian dialysis provider DCDC Kidney Care and clinical research organization HiRo.
“Healthcare is a fundamental human need, and this partnership with Ayala and AC Health reflects our mission to improve lives by advancing access to quality care,” said David Heng, CEO of ABC Impact.
The investment deepens the relationship between the Ayala Group and the Temasek ecosystem. Fernando Zobel de Ayala, chairman of AC Health and board director of Ayala Corporation, said the partnership would help build “a more resilient and inclusive health ecosystem for Filipinos.”
In 2024, AC Health posted a 10% revenue growth to 9.4 billion pesos (about $169 million). Its provider group under Healthway Medical Network saw a revenue growth of 22%.
