Maynilad enters Indonesia through joint venture
MAYNILAD WATER Services, Inc. has signed an agreement with an Indonesian firm to put up a joint venture company that will provide water and wastewater services in the country’s regional neighbor, two holding firms with a stake in the utility said on Thursday.
DMCI Holdings, Inc. and Metro Pacific Investment Corp. ( MPIC) separately told the stock exchange that the company to be created in partnership with PT Moya Indonesia will be tentatively called PT Water Tecnologia Indonesia.
“Moya Indonesia will own 51% of the [ joint venture company], with Maynilad owning 49%,” the holding firms said in their disclosures.
The services to be offered by the joint venture in Indonesia will cover pipe network design and installation, non- revenue water and wastewater management, they said.
The new company’s principal license and incorporation are subject to the approval of Indonesia’s Investment Coordinating Board and the Ministry of Justice.
Maynilad’s new partner Moya Indonesia was established in 2011 and owns 95% of PT Moya Bekasi Jaya, PT Moya Tangerang, and PT Moya Makassar.
Each of the units has a service concession arrangement with the Regional Drinking Water Co. ( PDAM) of Tirta Bhagasasi Bekasi Regency, Tirta Benteng Tangerang City and Tirta Dharma Makassar City, respectively, for the provision of bulk water.
Moya Indonesia is wholly owned by Moya Indonesia Holdings Pte. Ltd., a Singapore company. In turn, the Singaporean firm is owned by Moya Holdings Asia Ltd., a company listed at the Singapore Stock Exchange’s Catalist.
Maynilad is a consortium made up of MPIC, DMCI Holdings and Marubeni Philippines Corp. They hold a 93% equity in Maynilad. DMCI Holdings’ economic interest in the water utility decreased to 25% from 41% after Marubeni acquired 20% of Maynilad in Feb. 2013.
Maynilad did not immediately respond to request for details of the joint ventures.
On Thursday, shares in MPIC rose by 2.33% to P6.59 each, while shares in DMCI Holdings slipped by 1.52% to P13 apiece. —