Metro Pacific chair Manuel V. Pangilinan. INQUIRER file photo
Infrastructure holding firm Metro Pacific Investments Corp. has expanded its regional footprint with the acquisition of 49 percent of Tuan Loc Water Resources Investment Joint Stock Co. (TLW), one of the largest water companies in Vietnam, for P1.99 billion.
The buy-in deal, which is done through wholly-owned subsidiary MetroPac Water Investments Corp., allows the Metro Pacific group led by businessman Manuel V. Pangilinan to expand into Vietnamese industrial water concessions.
TLW is one of the leading water companies in Vietnam, with 310 million liters per day (MLD) of installed capacity and a billed volume of around 87 MLD as of yearend 2017. Majority of TLW’s operating capacity targets industrial parks.
The biggest project of TLW is the Song Lam Raw Water Treatment Plant, a 50-year build-own-operate project (2015-2064) with an installed capacity of 200 MLD expandable to 300 MLD. This plant supplies raw water to Nghe An Water Supply JSC and surrounding industrial parks.
Nghe An Province is the largest province in Vietnam by area with a population of about 3.1 million people.
Another major asset is Ho Cau Moi Water Treatment Plant, a 50-year build-own-operate project (2017-2066) with an installed capacity of 90 MLD expandable to 120 MLD. This plant supplies treated water to Dong Nai Water Co. and surrounding industrial parks.
Dong Nai Province is the manufacturing satellite of Ho Chi Minh City and will be the location of the Long Thanh International Airport, which can serve 100 million passengers. Dong Nai Province has a population of about 2.9 million.
The third major asset of TLW is Nhon Trach 6A Sewage Treatment Plant, a 50-year build-own-operate project (2017-2066) with an installed capacity of 20 MLD expandable to 40 MLD. This is the wastewater treatment facility for the 400-hectare Nhon Trach 6 Industrial Park in Dong Nai Province.
The total consideration of 865.6 billion Vietnamese dong (equivalent to P1.99 billion) took into account the value of the assets and the business of the company.
The deal is subject to the satisfaction of customary closing conditions. Under the share purchase agreement, the parties have until June 30, 2018 to complete the transaction.