Ayala-led Manila Water acquires stake in Thailand-based firm East Water

MANILA WATER Co. has signed a share purchase agreement to acquire an 18.72% stake in a publicly listed water supply and distribution company in Thailand, the Ayala-led company told the stock exchange on Monday.

Metro Manila’s east zone water concessionaire said the stake in Eastern Water Resources Development and Management Public Co. Ltd. is the company’s first point of entry in Thailand as part of the its expansion in Southeast Asia.

“Manila Water marks another milestone in its regional growth, as it establishes its presence in Thailand through East Water. We recognize the opportunities this new market presents for us, and we are eager to share the technical expertise and service quality which Manila Water has developed over the last twenty years,” said Fernando Zobel de Ayala, president and chief operating officer of Manila Water.

“From the conglomerate perspective, Ayala sees this development as a strategic entry point into Thailand,” he added.

Mr. Zobel de Ayala, who is also Manila Water board chairman, said with Manila Water leading the way, “we hope to leverage our various capabilities to enlarge our footprint in the country.”

Manila Water said the Thai company provides raw and tap water supply services in the eastern region of Thailand, the country’s main industrial area and home to various heavy industries, including automotive, electronics and petrochemicals.

It said East Water provides raw water supply to three provinces, holds concession contracts to operate in 11 locations, and provides water service to several industrial estates. These areas cover 13,285 square kilometers, which is almost as large as the Calabarzon, the region made up the provinces of Cavite, Laguna, Batangas, Rizal and Quezon.

Ferdinand M. dela Cruz, Manila Water president and chief executive officer said: “Our entry into the Thailand water space aligns squarely with our internationalization strategy, with focus in Southeast Asia.”

He said East Water presents “great potential” as its future growth would come from the Eastern Economic Corridor, the Thai government’s initiative to further develop the country’s eastern seaboard into a leading economic zone in the Association of Southeast Asian Nations.

Manila Water will finance the acquisition through a combination of internally generated funds and bank debt.”

The Ayala company’s foray into Thailand comes after it embarked on bulk water and concession projects in Vietnam. It also conducted pilot projects in Bandung, Indonesia for a nonrevenue water reduction program and in Yangon, Myanmar for leakage reduction.

On Monday, shares in Manila Water rose 1.09% to close at P27.70 each. — Victor V. Saulon