Ayala-led Manila Water Co. Inc. on Tuesday said that its Singapore unit has signed an investment agreement for the acquisition of over 30 percent stake of Saigon Water Infrastructure Corp. (SII).
In a disclosure to the Philippine Stock Exchange, Manila Water said that its wholly- owned subsidiary Manila Water South Asia Pte. Ltd. (MWSAH) will acquire 18.37 million primary shares of SII, representing 31.47 percent of the company’s outstanding capital stock.
Manila Water, however, clarified that MWSAH shall pay the subscription price only after compliance by SII with all the conditions precedent, of which compliance shall occur within 105 days from August 20, 2013.
SII is a Vietnamese company listed in the Ho Chi Minh City Stock Exchange since September 2012.
It aims to become the first fully integrated company in the Vietnamese 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.
According to reports, the funds raised in the acquisition will be used in SII’s water treatment projects in Gia Lai and Ninh Thuan provinces.