Metro Pacific Investments Corp (MPIC), an infrastructure conglomerate, formalized its interest in acquiring PrimeWater Infrastructure Corp, a water utility firm owned by the Villar group.
MPIC signed a non-disclosure agreement (NDA) to begin due diligence on PrimeWater’s assets, a top executive said.
MPIC chairman, president and chief executive Manuel Pangilinan said the company is reviewing the provided financial data before finalizing an offer.
“We are at the beginning of the process. We are getting feedback from the preliminary analysis of the numbers they have provided for us,” Pangilinan said.
He said an offer could be finalized within a week. However, MPIC has not yet determined its acquisition strategy, including whether it would bid for the entire company or only specific profitable assets.
Pangilinan also noted that PrimeWater has outstanding debts that have not yet been addressed in the discussions.
PrimeWater holds joint venture agreements with more than 70 water districts across the Philippines, including in Bulacan and Cavite.
MPIC owns a stake in Maynilad Water Services Inc, the concessionaire for the west zone of Metro Manila.
It also wholly owns MetroPac Water Investments Corp. (MWIC), which previously confirmed talks with PrimeWater. MPIC has not yet decided which of its two water utility firms would make the potential acquisition.
MWIC operates over 700 projects in the Philippines and Vietnam, serving over 530,000 customers and 85,000 service connections in the Philippines.
Its major local projects include water distribution in Dumaguete and Iloilo and bulk water supply in Cagayan de Oro and Iloilo.
The Villar Group is reportedly considering selling PrimeWater.
