The Ayala and Razon groups have agreed that the latter would pay half of a P10.7-billion infusion into Manila Water Co. Inc. by way of subscription agreement upon closing of the deal, and the remaining half when Manila Water’s board calls for it.
Also, Manila Water and Prime Strategic Holdings formally named Trident Water Company Holdings Inc. as the Razon group’s vehicle for securing 25 percent of the outstanding shares in the concessionaire of Metropolitan Waterworks and Sewerage System’s East Zone business area.
These are part of an agreement they signed on Feb. 1, 2020, through which Prime would subscribe to 820 million shares in Manila Water at P13 a piece.
The Philippine Competition Commission gave the transaction the green light, but the deal has yet to satisfy other conditions, including lender and other regulatory approvals.
Also in February last year, Manila Water assigned Trident Water proxy rights, such that the latter would have a 51-percent voting interest in the former.
According to the two parties, such shareholders’ agreement will become effective after the closing of the subscription agreement.
The subscription agreement was announced last year in the wake of tirades from President Duterte against the Zobels for “robbing the government” of billions of pesos by way of an “onerous” concession agreement with the MWSS. —Ronnel W. Domingo INQ