Photo from Vivant Energy Corp/Website
Listed Vivant Corp.’s subsidiary Vivant Hydrocore Holdings Inc. (VHHI) exited its partnership with Israeli firm Watermatic International Ltd. on Friday to focus on other segments of its water business.
In a disclosure on Friday, the Cebu-based conglomerate said VHHI signed a share sale and purchase agreement with its foreign partner to divest equity interest in their joint venture, Watermatic Philippines Corp. (WMP).
The accord is valued at P31.88 million, involving VHHI’s 60-percent stake in WMP, equivalent to 31.875 million shares priced at P1 apiece.
“The exit enables VHHI to strategically focus on further intensifying its growth initiatives across other segments of the water infrastructure sector,” the company said.
Vivant said the deal is subject to usual conditions precedent to closing such a transaction while the payment will be settled on “an installment and deferred basis.”
The board of Vivant Infracore Holdings, Inc. (VIHI), VHHI’s parent firm, approved the divestment on Sept. 19 and VHHI on Oct. 10. Vivant’s board subsequently acknowledged and re-affirmed the transaction on Friday.
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VHHI is a subsidiary of VIHI, the holding company for the Vivant Group’s water-related investments.
The entity partnered with Watermatic International, an Israel-based manufacturer of advanced water and wastewater treatment systems with projects worldwide, to establish joint venture company WMP in 2019.
WMP is engaged in the design, supply, installation, commissioning, operation and maintenance of water treatment, and wastewater treatment plants.
At present, the joint venture is undertaking a seawater desalination plant in Cordova town in Cebu with a capacity of 20 million liters per day, touted as the country’s first utility-scale seawater desalination facility.
The facility, slated for completion before the year ends, would utilize seawater reverse osmosis technology, which removes salt from seawater to produce potable water.
“The exit will not have any impact on the plant completion by Watermatic Philippines, which is covered by a separate contract,” Vivant said.
Around 20,000 households in Metro Cebu are expected to benefit from the seawater desalination plant once completed.
Both parties expressed willingness to forge “a potential partnership” in the future, anchored on their shared commitment to introducing innovative water solutions to address the pressing water security issue in the Philippines.