Enrique Razon Jr. FILE PHOTO
Conglomerate Ayala Corp. has ceded majority voting rights in water concessionaire Manila Water Co. to its new strategic partner, tycoon Enrique Razon Jr. who is infusing P10.7 billion in fresh equity to the beleaguered firm.
As part of the shareholder agreement to be executed among Ayala Corp., Ayala’s wholly owned subsidiary Philwater Holdings Co. and Trident Water – the firm that Razon’s infrastructure arm Prime Metroline Holdings Inc. will incorporate for this transaction – Ayala has approved the grant of proxy rights by Philwater to Trident Water over such number of preferred shares to enable the latter to achieve 51 percent voting interest in Manila Water.
Philwater owns four billion preferred shares in Manila Water, representing 65.95 percent of voting shares in the company. Upon the grant of proxy rights to Trident Water, Ayala’s effective voting interest in Manila Water will stand at 31.6 percent, Ayala disclosed to the Philippine Stock Exchange on Thursday.
This realignment of voting rights follows Razon’s P10.7 billion equity infusion that gives it 25 percent equity control of Manila Water.
“This arrangement aims to strategically rationalize the economic and voting stakes between Ayala and Trident Water as strategic partners in Manila Water,” Ayala disclosed.