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Manila Water acquires 18.7% stake in East Water of Thailand

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Manila Water Co. Inc., a unit of conglomerate Ayala Corp., said it is venturing into Thailand’s water industry to further expand its footprint in Southeast Asia.

Manila Water said in a disclosure to the stock exchange it signed an agreement to acquire the 18.72-percent interest of Electricity Generating Public Company Limited in Eastern Water Resources Development and Management Public Company Limited (East Water). 

“Manila Water marks another milestones in its regional growth, as it establishes its presence in Thailand through East Water. We recognize the opportunities this new market presents for us and we are eager to share the technical expertise and service quality which Manila Water has developed over the last twenty years,” Ayala Corp. president and Manila Water board chairman Fernando de Ayala said.

“From the conglomerate’s perspective, Ayala sees this development as a strategic entry point into Thailand. With Manila Water leading the way, we hope to leverage our various capabilities to enlarge our footprint in the country,” he added.

East Water in a statement posted on its website said the transaction was expected to be closed in the first quarter of 2018.

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East Water provides raw and tap water supply services in the eastern region of Thailand, the country’s main industrial area and home to several heavy industries, including automotive, electronics and petrochemicals.

It currently provides raw water to three provinces, holds concession contracts to operate in 11 different locations and delivers water to several industrial estates.

Manila Water president and chief executive Ferds dela Cruz said the deal was part of the group’s internationalization strategy with focus in Southeast Asia.

“East Water presents great potential as its future growth will mainly come from the Eastern Economic Corridor, the Thai government initiatives to further deepen the country’s eastern seaboard into a leading economic zone in the Asean,” dela Cruz said.

The acquisition is subject to the fulfillment of certain conditions. 

Manila Water said it would fund the acquisition through a combination of internally generated funds and bank debt.

Manila Water’s entry in Thailand comes after its successful foray into the bulk water and concession projects in Vietnam, where it is now he largest direct foreign investor in Vietnam’s water sector.

It also has completed pilot projects in Bandung, Indonesia for non-revenue water reduction program and in Yangon, Myanmar for leakage decrease.

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