AYALA-LED Manila Water Company, Inc. (Manila Water), through its wholly owned subsidiary Manila Water South Asia Holdings Pte. Ltd. (MWSAH) based in Singapore, announced on Monday that it is increasing its stake in Saigon Water Infrastructure Corp. (Sll) in Vietnam to nearly 38 percent from 31 percent.
In a disclosure to the local bourse, Manila Water said that MWSAH has signed an investment agreement with Saigon Water for the acquisition of an additional 6.15 million primary shares in Saigon Water.
The agreement will give MWSAH ownership of a total of 37.99 percent of the outstanding capital stock of Saigon Water.
In a November 2015 disclosure to the PSE, Manila Water said that at the time, it held a 31 percent stake in Saigon Water.
Under the latest agreement, MWSAH will pay the subscription price after compliance by Saigon Water with all the conditions precedent, unless waived by MWSAH.
The statement did not disclose the subscription price under this latest agreement.
Saigon Water is a holding company in Vietnam that is listed on the Ho Chi Minh City Stock Exchange. It aims to become the first fully integrated company in the Vietnam water and wastewater infrastructure sector, through the construction of water and wastewater treatment plants and the provision of engineering, operation and management services and other similar activities.
Saigon Water’s current investments include Tan Hiep 2, a bulk water company providing 300 million liters per day to the state-owned utility serving the area of Hoc Mon, Ho Chi Minh City. It also has investments in Cu Chi Water, which distributes water to the Cu Chi district in Ho Chi Minh City with almost 75,000 water service connections.
Outside of Ho Chi Minh City, it has investments in a 20-million liter per day bulk water company as well as a water distribution company in the major provinces of Gia Lai and Lam Dong, respectively.
For the first quarter of this year, Manila Water reported a two percent decline in its net income to P1.449 billion from P1.481 billion a year ago on higher costs from new investments and expansion initiatives.
Consolidated revenues rose 3 percent year-on-year to P4.35 billion in the first quarter on a slight increase in billed volume during the period.
The water company holds the exclusive right to provide water and used water services to the east zone of the franchise area of the Metropolitan Waterworks and Sewerage System (MWSS). The east zone encompasses 23 cities and municipalities that includes Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila as well as 14 towns of Rizal Province.