LISTED water provider Manila Water Company, Inc. said on Thursday it has completed the purchase of an additional 6 million primary shares in Vietnam-based Saigon Water Infrastructure worth 103.8 billion Vietnamese Dong (VND) or P230 million.
In a filing to the Philippine Stock Exchange (PSE), Manila Water, through its wholly-owned Singapore subsidiary Manila Water South Asia Holdings Pte. Ltd. (MWSAH), said that the acquisition increased Manila Water’s stake in Saigon Water from 31.47 percent to 38 percent.
A total of 6.146 million shares were purchased worth 16,900 VND per share as agreed by the two parties.
“The transaction is in line with the investment strategy of Manila Water in Vietnam and in Asia,” the company said.
“MWSAH shall pay the subscription price for the additional shares upon compliance by Saigon Water of the conditions precedent,” it added.
Based on the investment agreement between the two firms, MWSAH can subscribe to an additional 6.1 million shares of Saigon Water.
The transaction was approved by the MWSAH Board last 2013, and was approved by the stockholders of Saigon Water in April this year.
Saigon Water is a holding firm 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.
Manila Water, on the other hand, is the sole provider of water and wastewater services to residents in the east zone of Metro Manila.