• MPIC acquires ESTII for P1.8B

    0

    Metropac Water Investments Corp., the water unit of the infrastructure conglomerate Metro Pacific Investments Corp. (MPIC), has acquired 65 percent stake in a waterwaste treatment company, Eco-System Technologies International Inc. (ESTII) for P1.8 billion.

    Metro Pacific has described the acquisition, which it disclosed to the Philippine Stock Exchange on Friday, as a strategic move that will allow the company to secure a huge market share in the high-growth waterwaste business in the country.

    ESTII is engaged in the business of designing, supplying, constructing, installing, and operating and maintaining wastewater and sewerage treatment plant facilities. Its track record includes designing and building more than 500 high performing wastewater treatment and water recovery plants in the country.

    MPIC through its water unit took 12, 000 Class A common shares from Eco-System for the total amount of P1.7 billion, which represent 60 percent of the total outstanding capital stock of the firm. The price translates as P141.67 a share,

    In addition, it also subscribed to one million Class C common shares at P100 a apiece or for a total of P100 million, representing 5 percent of total outstanding capital stock of Eco-System, thus brining Metropac Water’s equity in the company to 65 percent.

    “The transaction allows MPIC through MWIC to diversify its water sector investment holdings and invest in the high growth wastewater EPC [engineering, procurement and construction] O&M [operations and maintenance) market,” MPIC told the local bourse.

    The terms of payment are made in three tranches, MPIC said.

    Thus, on closing date (June 16, 2016), Metropac Water would pay P1 billion, and upon submission of the Philippine Contractors Accreditation Board license of Eco-System, an additional P500 million.

    Thereafter, upon submission of the Certificate Authorizing Registration (CAR) for the transfer of shares from Eco-System to Metropac Water, the latter shall pay the amount of P200 million.

    On the same closing date, Metropac Water would invest P100 million for the subscription to one million Class C common shares.

    “Eco-System has a leading market position in the Philippine wastewater industry and has a valuable client base comprised of major mall, office, commercial and residential property developers, hotels and resorts, hospitals and industrial facilities,” MPIC said.

    Share.
    loading...
    Loading...

    Please follow our commenting guidelines.

    Comments are closed.