Manila Water Buys Stake in Vietnam Firm

A unit of Manila Water Company Inc in Singapore has bought 24 per cent stake of Vietnam-based Saigon Water Infrastructure Corp in Cu Chi Water Supply Sewerage Company Ltd for $7 million (VND154.350 billion)

The Ayala-led water firm informed the stock exchange on Tuesday that its wholly-owned subsidiary Manila Water South Asia Holdings Pte Ltd (MWSAH) in Singapore has completed the execution of a Capital Transfer Agreement with Saigon Water for the acquisition of 24.5 per cent of the charter capital of Cu Chi Water.

Manila Water owns 31.47 per cent of the outstanding capital stock of Saigon Water.

A limited liability company in Vietnam, Cu Chi Water is engaged in water exploitation, treatment and supply and sewerage and waste water treatment, installation of supply system, and management consultancy services.

Manila Water said, the deal serves as additional investment in the water industry in Vietnam. The charter capital was paid in full cash.

MWSAH is one of the four Singapore-based subsidiaries of Manila Water. The three others are Manila Water Asia Pacific Pte Ltd, Thu Duc Water Holdings Pte Ltd, and Kenh Dong Water Holdings Pte Ltd.

Manila Water’s presence in Vietnam is through two bulk water companies, namely, Thu Duc Water BOO Corporation, and Kenh Dong Water Supply Joint Stock Company.

Manila Water had in October approved investments of up to $13 million in its units in the Philippines, Singapore, and Vietnam, only four days after signing a ¥40 billion (P15.4 million) seven-year loan term facility with three Japan-based banks in Hong Kong.

The Philippine-listed water firm currently serves over 6.3 million population in key cities within Metro Manila such as Quezon City, Manila, Marikina, Pasig, San Juan, Mandaluyong, Pateros, Makati, Taguig, and Rizal.

Source: DealStreet Asia

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