Razon acquires Manila Water majority rights
The purchase of the preferred shares reflects a 39.09 percent voting stake and 8.19 percent economic stake in Manila Water
Ports magnate Enrique K. Razon’s Trident Water Company Holdings Inc. has gained more control in Manila Water Company Inc. after it acquired P4.8-billion worth of preferred shares in the Ayala-led utility firm.
Parent firm Ayala Corporation informed the
local bourse on Tuesday that its unit Philwater Holdings Company Inc. sold 2.69 billion of its shares in Manila Water to Trident Water for P1.80 each.
“The purchase of the preferred shares reflects a 39.09 percent voting stake and 8.19 percent economic stake in Manila Water,” Ayala Corp. said.
Manila Water is the east zone water concessionaire in Metro Manila.
Razon’s Prime Metroline Holdings Inc. (PMHI) formed Trident Water when it acquired 25 percent of Manila Water last year after infusing P10.7 billion fresh funding to the then beleaguered firm.
The share purchase agreement for the transaction also included the grant of proxy rights that effectively gave the Razon group 51 percent voting rights in Manila Water.
Razon also owns and controls the container yard at the Port of Manila through International Container Terminal Services Inc.
He has ventured into the water business with his bid to develop the Wawa Dam in Rizal province amid negotiations for new concession deals with the national government.
The share purchase agreement for the transaction also included the grant of proxy rights that effectively gave the Razon group 51 percent voting rights in Manila Water.
To recall, President Rodrigo Duterte repeatedly decried supposedly onerous supply contracts of water distributors Manila Water and Maynilad over the previous years.