Ports and gaming tycoon Enrique Razon Jr. has completed the acquisition of a controlling stake in water utility firm Manila Water Co. Inc. from conglomerate Ayala Corp.
During Manila Water’s special board meeting Thursday, Razon was elected chairman, president and chief executive of the water utility firm.
Meanwhile, Fernando Zobel de Ayala stepped down as chairman while Jose Rene Gregory Almendras also resigned as president and chief executive of Manila Water.
Manila Water, in a disclosure to the stock exchange, said Razon’s take over of Manila Water was completed after his company Trident Water Co. Holdings Inc. completed the tender offer conducted for the minority shares of Manila Water.
In 2020, Razon-led Prime Metroline Holdings Inc., on behalf of its wholly-owned subsidiary Trident, entered into a subscription agreement with Manila Water for the acquisition of 820 million common shares in the company at subscription price of P13 per share. This is equivalent to 11.91 percent stake in the company.
Last February Trident also purchased 2.69 billion preferred shares in Manila Water for P4.8 billion. The purchase of preferred shares boosted Trident’s stake in Manila Water to 51 percent.
The Ayala group meanwhile will continue to own 31 percent direct interest in the water utility firm.
Also elected to the board of directors representing Razon’s group were Donato S. Almeda and Christian Martin R. Gonzalez and Rafael D. Consing Jr.
The entry of Razon in Manila Water happened following rants by President Rodrigo Duterte against water concessionaires in Metro Manila because of alleged “onerous” concession agreement with the state-owned Metropolitan Waterworks and Sewerage System.
Last month, Manila Water, which is the concessionaire for the east zone of Metro Manila, finalised a new concession agreement with the government.
Among the key features of the revised CA include the continuation of the concession until July 31, 2037 and the removal of the recovery of the Corporate Income Taxes and adjustment for foreign currency differential (FCDA).
Shares of Manila Water on Friday rose by P0.040 to close at P14.88 apiece.