Jolliville, Udenna near deal completion

Philippine H2O Ventures Corp. is selling its water business in Oriental Mindoro for P442 million to affiliate Tabuk Water Corp. in preparation for a subsequent sale to the group of Dennis Uy, the parent firm said yesterday.

In a regulatory filing, Jolliville Holdings Corp. said H2O and Tabuk had entered into a share purchase agreement.

H2O is selling its entire shares and interests in Calapan Waterworks Corp., or 99.75 percent of the latter’s capital stock.

Calapan Waterworks owns and operates the local waterworks system of Calapan City. It is engaged in the business of developing and using water resources to harness, produce and supply water for domestic, municipal, agricultural, industrial, commercial and/or recreational purposes.

The parent firm said the sale was being made in accordance with a memorandum of agreement dated Dec. 21, 2017, signed by Jolliville along with subsidiaries and related parties, and Uy’s Udenna Development Corp. (Udevco).

The MOA committed the Jolliville group to sell to Udevco its entire holding (62 percent) in H2O. “One of the conditions to the H2O sale is the spin-off by H2O of all its existing business and assets,” Jolliville said.

“The closing of the sale of the water business shall be conditioned upon, among others, the approval by at least two-thirds of the shareholders of H2O, and the confirmation by Udevco and (Jolliville) that the closing of the H2O sale will proceed,” Jolliville said.

Jolliville’s board has approved an additional subscription in Tabuk Water Corp. of 440 million common shares at P1 per share.

The subscription depends on the condition that the special purpose agreement between Jolliville and Udevco should be consummated.