MANILA WATER Philippine Ventures, Inc. (MWPV), a subsidiary of Manila Water Co., Inc., announced on Thursday its acquisition of a 70% stake in investment firm Equipacific HoldCo, Inc. (EHI) for P1.15 billion.
MWPV signed a share purchase agreement with Equi-Parco Holdings Corp., Metropac Water Investments Corp., and TwinPeak Hydro Resources Corp. to acquire their respective interests of 30%, 30%, and 10% in EHI.
“The acquisition will allow Manila Water Philippine Ventures, Inc. to establish a stronger foothold and strategically grow its water and wastewater supply operations in the Province of Laguna,” Manila Water told the local bourse on Thursday.
MWPV has acquired a total of 315,015,625 shares at a price of P3.65 each.
Manila Water said that P920 million will be paid upon closing, while the remaining balance of P230 million will be paid within six months after the closing date, subject to the completion of post-closing obligations.
MWPV was designated as the “vehicle for expansion within the Philippines” and now houses the 20 domestic subsidiaries of the Manila Water Group.
Meanwhile, EHI is an investment company that holds 90% of the outstanding shares of Laguna Water District Aquatech Resources Corp. (LARC).
LARC is a joint venture company formed for 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 in the province of Laguna.”
“Equipacific HoldCo Inc. will contribute to the earnings of Manila Water Philippine Ventures, Inc.,” Manila Water said. — Sheldeen Joy Talavera