Manila Water raises stake in Vietnam water firm

By Czeriza Valencia (The Philippine Star)
Updated May 30, 2017 – 12:00am
http://www.philstar.com/business/2017/05/30/1704778/manila-water-raises-stake-vietnam-water-firm

In a regulatory filing yesterday, the company said its wholly owned unit Manila Water South Asia Holdings Pte. Ltd. (MWSAH) has signed an investment agreement with Saigon Water Infrastructure Corp. (SII) for the acquisition of additional 6.15 million primary shares which will allow it to own 37.99 percent of the outstanding capital stock of SII.

SII is a holding company in Vietnam listed on the Ho Chi Minh City Stock Exchange. It aims to become the first fully integrated water services firm in Vietnam, providing both water and wastewater treatment service as well as engineering, operation and management services.

It has holdings in Tan Hiep 2, a bulk water company supplying 300 million liters per day to the state-owned utility serving the area of Hoc Mon, Ho Chi Minh City where it has 75,000 water service connections.

Outside Ho Chi Minh, SII has interest in a bulk water company that supplies 20 million liters per day in Gia Lai province, as well as a water distribution company in lam Dong province.

Manila Water said MWSAH will pay the subscription prices after SII has complied with the conditions laid down for the acquisition.

“Manila Water undertakes to provide the exchange with all the necessary information about the transaction upon the completion of the acquisition,” the firm said.

Manila Water still derives most of its income from its Metro Manila east zone concession area that covers parts of Quezon City and Makati, the southeastern parts of Manila, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong and Rizal province.

The company, however, has been expanding its presence overseas. In Vietnam, it already operates Thu Duc Water Holdings Pte. Ltd. and Kenh Dong Water Holdings Pte. Ltd.