MANILA, Philippines — Manila Water Co. Inc. of tycoon Enrique Razon Jr. is cornering a 70-percent stake in Equipacific HoldCo Inc. (EHI) for P1.15 billion to fortify its presence in Laguna province.
In a disclosure on Thursday, the listed water concessionaire said its subsidiary, Manila Water Philippine Ventures Inc. (MWPV), signed an agreement to acquire the respective holdings of Equi-Parco Holdings Corp. (30 percent), Metropac Water Investments Corp. (30 percent) and TwinPeak Hydro Resources Corp. (10 percent) in EHI.
Manila Water said the transaction would allow MWPV “to establish a stronger foothold and strategically grow its water and wastewater supply operations in the province of Laguna.”
It also said the deal would “contribute to the earnings” of MWPV, Manila Water’s vehicle for expansion within the Philippines.
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The share purchase agreement involves the purchase of 315.01 million shares for P3.65 apiece or a total of P1.15 billion.
P920M in upfront payment
An initial P920 million will be paid upon closing and the remaining P230 million will be paid within six months after the closing date, subject to post-closing obligations.
Manila Water said other conditions would be followed, including corporate approvals and other third-party consents.
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EHI, an investment company, holds 90 percent of Laguna Water District Aquatech Resources Corp.’s (LARC) outstanding shares.
In turn, LARC is a joint venture company engaged in the rehabilitation, improvement, expansion, operation, and maintenance of the water supply system of the Laguna Water District in the towns of Los Baños, Bay, Calauan, Victoria, and Nagcarlan.
Through MWPV, Manila Water is exploring potential projects in both water and environmental services. The unit houses 20 domestic subsidiaries of Manila Water.
Parent firm Manila Water holds a congressional franchise to deliver water supply, wastewater, and sanitation services in the East Zone concession area covering parts of Metro Manila and Rizal province.