MWC raises stake in Vietnamese firm

The Singapore-based unit of Manila Water Company Inc. will increase its stake in Sai Gon Water Infrastructure Corp. (SII) to about two-fifths.

The Ayala group company said its wholly owned subsidiary Manila Water South Asia Holdings Pte. Ltd. (MWSAH) had signed an investment agreement on the sale of 6.15 million primary shares in SII.

This will “allow MWSAH to own a total of 37.99 percent of the outstanding capital stock of SII,” Manila Water said.

Manila Water first closed a deal to acquire a 31.47-percent interest in SII, which is based in Ho Chi Minh City, in October 2013. That deal represented 18.37 million shares in the infrastructure corporation.

Manila Water said MWSAH had subscribed to Sai Gon Water shares at 16,900 Vietnamese dong per share. Based on the exchange rate at the time, a share cost some P34.18 and placed the deal at a total of about P627.9 million.

Sai Gon Water intends 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 is aiming at doubling its 2015 net income of P6 billion within the next five years to 2020.

Ferdinand M. dela Cruz, the newly installed president and chief executive of Manila Water, said last April that in order to achieve its “very ambitious” profit target, Manila Water was banking on continued expansion within its MWSS concession; expanding into other concessions outside Metro Manila and the Philippines; and other less-regulated businesses like selling bottled water. —RONNEL W. DOMINGO