Listed conglomerate Ayala Corp. has increased its stake in Manila Water Corp. after it acquired bulk of Mitsubishi Corp.’s shares in the water utility firm for P2.8 billion.
In a statement, Ayala Corp. announced on Tuesday that it acquired
140 million common shares of Manila Water, representing a 5.7-percent interest in the water utility, from Mitsubishi Corp. Mitsubishi Corp. has been a partner of the Ayala Group in Manila Water since 1997.
The transaction, which was valued at P2.8 billion, was executed via a special block sale through the Philippine Stock Exchange.
Following the acquisition, Ayala’s stake in Manila Water will go up from 43.1 percent to 48.8 percent, while Mitsubishi will remain a shareholder with a 1.2-percent interest.
“We believe in the long-term growth potential of Manila Water as it continues to expand outside the East Zone of Metro Manila into other areas here and abroad that are in critical need of reliable water and wastewater services,” said Fernando Zobel de Ayala, Ayala president and chief executive officer.
Besides Manila Water’s concession in Metro Manila’s East Zone, the company currently has four domestic water businesses, which include Boracay Water, Laguna Water, Clark Water, and a bulk water supply project in Cebu.
Combined, these businesses serve a population of 8 million Filipinos and Manila Water has continued to expand coverage and consistently reduce nonrevenue water or system leakage over the past years.
Manila Water has also expanded into water businesses around the Association of Southeast Asian Nations region, particularly in Vietnam where its expertise in water service and quality has been validated with the acquisition of two bulk water supply facilities in Ho Chi Minh City.
Its leakage reduction project in Ho Chi Minh City, which started in 2008 has already served 25 percent of the city’s 6 million population.