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THE new majority owners of Maynilad Water Services Inc. have
remitted to state-owned Metropolitan Waterworks and Sewerage System
(MWSS) the initial payment for the government’s stake in the water
utility, Metro Pacific Investments Corp. (MPIC) said.
MPIC informed the Philippine Stock Exchange that
DMCI-MPIC Water Co., its joint venture with DMCI Holdings Inc.,
turned over the certificate showing the $59-million minimum bid
requirement has been placed in escrow with the Land Bank of the
Philippines.
DMCI and MPIC won the bid for the government’s
83.9-percent stake in Maynilad for $447.23 million. The purchase
will give DMCI and the MPIC access to 8 million customers in the
west of Manila.
The group outbid the consortium of Manila Water
Co. and BPI Capital Investments Corp., both subsidiaries of
conglomerate Ayala Corp., which offered $399.88 million.
DMCI and MPIC will also have to pay the
government $56.4 million in concession fees set by MWSS.
DMCI and MPIC each own 50 percent of the
outstanding capital stock of DMCI-MPIC Water Co. Inc.
“A new era of service and improvement begins
for the millions of water customers in Metro Manila’s West
Concession Zone,” Manuel V. Pangilinan, MPIC chairman, said.
“Throughout First Pacific’s history, we’ve
built companies and transformed others—including PLDT—into
customer centric and profitable organizations. I am confident that,
while it will take some time to formalize our plans and to begin
putting them in action, that our goal of providing safe and reliable
24-hour water supplies to Maynilad’s customers will become a
reality,” he said, referring to the successful turnaround of
Philippine Long Distance Telephone Co. after MPIC parent, First
Pacific Co. Ltd., bought a controlling stake in the country’s
largest telecom company.
Earlier, MPIC said it will negotiate to secure a
$62-million loan from Ashmore Funds and Metro Pacific Holdings Inc.
to fund the acquisition of government’s stake in Maynilad.
The loan will be convertible to common shares
that would be agreed upon in an investment agreement at a
subscription price of P1 a share.
Besides this, the MPIC will also procure a stand
by letter of credit from JP Morgan Chase Bank N.A. in the amount of
$240 million to partially secure MPIC’s obligations to contribute
cash to Maynilad.
--Darwin G. Amojelar
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