Ayala Corporation, United Utilities (UU) and Philwater Holdings Company Inc., a company owned 60% by Ayala and 40% by UU, signed today agreements for Ayala’s acquisition of UU’s 81.9 million common shares and economic interest in 2 billion preferred shares in Manila Water Co. for a total consideration of P3.5 billion.
The acquisition increases Ayala’s economic interest in Manila Water to 43.3% from the current 31.7%. UU, who has been Ayala’s technical partner in Manila Water since it began operating the water concession in Metro Manila’s East Zone in 1997, will continue to provide technical services to Manila Water and retain voting rights in the water company through its 40% ownership in Philwater, which holds Manila Water’s outstanding preferred shares.
Manila Water recently obtained a formal approval for the renewal of its MWSS concession, which is now extended up to 2037, allowing it to implement its aggressive P450 billion investment plan for Metro Manila’s East Zone. The company continues to tap opportunities beyond the East Zone. It recently took over the water concession of Sta. Rosa, Binan and Cabuyao in Laguna, and entered into a joint venture agreement with the Philippine Tourism Authority to develop the water distribution and sewerage facilities in the tourist island of Boracay.
Beyond the Philippines, Manila Water is exploring other water projects in the region where it plans to apply its expertise and track record in the provision of efficient water and wastewater services.
The above statement pertains to the disclosure made to the Philippine Stock Exchange and the Securities and Exchange Commission by Ayala senior managing director and CFO Rufino Luis T. Manotok.