Manila Water Company Inc. said Monday its unit in Singapore recently signed an agreement to buy an additional stake in Saigon Water Infrastructure Corp. (SII) of Vietnam.
Manila Water, a subsidiary of Ayala Corp., said in a disclosure to the stock exchange unit Manila Water South Asia Holdings Pte. Ltd. was acquiring 6.146 million primary shares of SII.
The agreement will allow MWSAH to own 37.99 percent of the outstanding capital stock of SII. MWSAH currently holds 31.47 percent of the outstanding capital of SII.
“Under the agreement, MWSAH shall pay the subscription price after compliance by SII with all the conditions precedent, unless waived by MWSAH,” said Manila Water.
Manila Water said the newly issued shares are priced at 16,900 Vietnamese dong per share.
“This is based on the valuation agreed by both parties,” Manila Water said.
SII is a Vietnamese company listed in the Ho Chi Minh City Stock Exchange since September 2012.
Manila Water plans to become the first fully integrated company in the Vietnam water and wastewater infrastructure sector, through the construction of water and wastewater treatment plants and the provision of engineering, operation and management services and other similar activities.
Manila Water said SII’s current investments included Tan Hiep 2, a bulk water company providing 300 million liters per day to the state-owned utility serving the area of Hoc Mon, Ho Chi Minh City.
SII also has investments in Cu Chi Water which distributes water to the Cu Chi district in Ho Chi Minh City with almost 75,000 water service connections. Outside of Ho Chi Minh City, it has investments in a 20 million liter per day bulk water company, as well as a water distribution company in the major provinces of Gia Lai and Lam Dong.
Manila Water is the east zone concessionaire of the Metropolitan Waterworks and Sewerage System that provides water and wastewater services to over 6.2 million residents of eastern Metro Manila and Rizal province.