Ayala Corporation announced that it acquired 140 million common shares of Manila Water Co., Inc. representing a 5.7% interest in the water utility. The shares were acquired from its strategic partner, Mitsubishi Corporation, which has been a long-time partner of Ayala since 1974 and has been a shareholder of Manila Water since 1997.
Following the acquisition, Ayala’s stake in Manila Water will increase from 43.1% to 48.8%, while Mitsubishi will remain a shareholder with a 1.2% interest.
Ayala President and COO Fernando Zobel de Ayala said, “Ayala Corporation is pleased to have this opportunity to increase its stake in Manila Water. Manila Water has consistently shown its ability to deliver world-class water and wastewater services, which brings countless benefits to the local and international communities in which it operates. We believe in the long-term growth potential of Manila Water as it continues to expand outside the East Zone of Metro Manila into other areas here and abroad that are in critical need of reliable water and wastewater services.”
Apart from Manila Water’s concession in Metro Manila’s East Zone, the company currently has four domestic water businesses which include Boracay Water, Laguna Water, Clark Water, and a bulk water supply project in Cebu. Combined, these businesses serve a population of 8.0 million Filipinos and Manila Water has continued to expand coverage and consistently reduce non-revenue water or system leakage over the past years. Manila Water has also expanded into water businesses around the ASEAN region, particularly in Vietnam where its expertise in water service and quality has been validated with the acquisition of two bulk water supply facilities in Ho Chi Minh City. Its leakage reduction project in Ho Chi Minh City which started in 2008 has outperformed its target and has benefited 25% of the city’s 6 million population.
The transaction is valued at P2.8 billion and was executed via a special block sale through the Philippine Stock Exchange.
The above statement pertains to the disclosure made on December 16, 2013, to the SEC, PSE, PDex, by Ayala CFO Chito Gonzalez.