AYALA-LED Manila Water Co., Inc. has acquired a stake in a listed water company in Thailand, marking its continuous expansion in Southeast Asia.
Manila Water said on Monday that it had signed a share purchase agreement with Electricity Generating Public Co. Ltd (EGCO) to purchase EGCO’s 18.72 percent equity in Eastern Water Resources Development and Management Public Co. Ltd. (East Water).
“The acquisition of shares in East Water will be Manila Water’s first venture into Thailand’s water industry,” it added.
Financial terms were not divulged. Manila Water said it intends to finance the transaction through internally generated funds and bank debt.
Sealing the deal is subject to the fulfillment of certain conditions precedent, it added.
“Our entry into the Thailand water space aligns squarely with our internalization strategy, with focus in Southeast Asia. East Water presents great potential, as its future growth will mainly come from the Eastern Economic Corridor (EEC), the Thai government’s initiative to further develop the country’s eastern seaboard into a leading economic zone in ASEAN,” Manila Water President and Chief Executive Officer Ferdinand dela Cruz said.
“We recognize the opportunities this new market presents for us, and we are eager to share the technical expertise and service quality which Manila Water has developed over the last twenty years,” said Ayala Corporation President and Chief Operating Officer Fernando Zobel de Ayala, who is also Manila Water’s board chairman.
East Water is a publicly listed company in Thailand that is engaged in the business of supplying raw and tap water supply services in the eastern region of Thailand.
It also holds concession areas to operate in 11 different locations, and renders water service to several industrial estates situated within a total area of 13,285 square kilometers.
The acquisition follows Manila Water’s foray into Vietnam last year. In November of 2017, the company raised its stake in Saigon Water Infrastructure Corp. to almost 38 percent from 31 percent through its unit Manila Water South Asia Holdings Pte. Ltd.
Manila Water has also completed pilot projects in Bandung, Indonesia for a non-revenue water reduction program, as well as in Yangon, Myanmar for leakage reduction.
Manila Water is in the business of providing water, sewerage and sanitation, distribution services, pipeworks, and management services to residential, commercial and industrial customers. It serves the East Zone of the Greater Manila Area.