Calapan stock rises as Maynilad eyes acquisition

Shares of Calapan Ventures Inc., owner of the waterworks system of Calapan City in Oriental Mindoro, surged Thursday on talk of a prospective takeover by Maynilad Water Services Inc.

“We’re also looking at Calapan,” Maynilad president Victorico Vargas said during a briefing on the first quarter results of Metro Pacific Investments Corp. (MPIC) last Wednesday.

But Vargas was quick to add that the discussions were still in the “very preliminary stage.”

Vargas said Maynilad, a unit of Metro Pacific, was looking at a potential acquisition, rather than a joint venture deal.

Shares of Calapan Ventures, which trades under the ticker H20, yesterday rose by 34 percent per share, giving it a market capitalization of P1.4 billion.

Yesterday, Calapan Ventures also told the Philippine Stock Exchange that Maynilad was one of the parties interested in a “possible cooperation, merger or acquisition, or joint venture” with the waterworks firm.

The Metro Pacific group has been described to be always on the lookout for opportunities.

“There are a number of companies we’re talking to,” said MPIC chief finance officer David Nicol.

It was recently reported that Calapan has opened itself up to new investors.  Doris C. Dumlao