MANILA Water Co. Inc. (Manila Water) is expanding its presence in Vietnam with the acquisition by its Singapore unit of a stake in Cu Chi Water Supply Sewerage Co. Ltd. for about $6.9 million.
In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, Manila Water said its Singapore unit, Manila Water South Asia Holdings Pte. Ltd. (MWSAH), has entered into an agreement with Saigon Water Infrastructure Corp. (SII) to invest in Cu Chi Water Supply.
It said MWSAH, a wholly-owned subsidiary of Manila Water, has completed the execution of a capital transfer agreement with SII, an affiliate of Manila Water.
The agreement paves the way for the acquisition of 24.5 percent of the charter capital of Cu Chi Water for VND154.35 million (about $6.9 million).
Manila Water is a unit of conglomerate Ayala Corp.
Cu Chi Water is a limited liability company in Vietnam engaged in water exploitation, treatment and supply and sewerage as well as wastewater treatment, installation of water supply system, and management consultancy services.
Manila Water earlier said it approved an additional investment of $4.26 million in MWSAH to fund further investments in Vietnam.
The company is operating in Vietnam through affiliates Thu Duc Water B.O.O Corp. and Kenh Dong Water Supply JSC as well as Saigon Water.
It entered into a five-year performance-based leakage reduction contract with Saigon Water Corp. in Vietnam in 2008.
Manila Water also recently signed an agreement with Vietnam’s REE Corporation and Mitsubishi Corporation to develop water, wastewater and other environmentally-related projects in Vietnam.