MPIC poised to sell 10% stake in Maynilad

Infrastructure holding firm Metro Pacific Investments Corp. (MPIC) is set to sell a 10-percent stake in water utility concessionaire Maynilad Water Services to an Asian strategic investor for around P12 billion.

“We’re in discussion with (a) party at the moment. The discussions are going very well. We’re hoping that we’ll find at least a provisional term sheet that we can sign within the next two to three weeks. Then, it will be subject to confirmation due diligence process which we’ll give them up to 90 days to complete,” MPIC chief finance officer David Nicol said.

The prospective deal will cut MPIC’s effective ownership in Maynilad to 42.8 percent from 52.8 percent, allowing the group to raise fresh funds for big-ticket infrastructure projects while remaining the single biggest shareholder of the company.

Other shareholders in Maynilad include Japanese conglomerate Marubeni, with a 20 percent stake, and DMCI Holdings with 27.2 percent. —DORIS DUMLAO-ABADILLA