Manila Water buys 70% of Laguna water supplier

Manila Water Philippine Ventures (MWPV), a subsidiary of Razon-controlled Manila Water Company catering to cities and municipalities outside of East Zone, has acquired a 70 percent in Equipacific Holdco Inc. for ₱1.15 billion.

Equipacific Holdco is an investment company, which holds 90 percent of the outstanding shares of Laguna Water District Aquatech Resources Corporation (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 (LWD) in the municipalities of Los Baños, Bay, Calauan, Victoria and Nagcarlan in the province of Laguna.

In a disclosure to the Philippine Stock Exchange, Manila Water said MWPV has signed a share purchase agreement (SPA) with Equiparco Holdings Corporation (EPHC),

Metropac Water Investments Corporation (MWIC), and Twinpeak Hydro Resources Corporation (THRC) for the sale and purchase of shares in Equipacific Holdco.

Equiparco and Metropac Water sold a 30 percent stake each in Equipacific while Twinpeak Hydro sold shares equivalent to 10 percent of Equipacific. Combined, the three firms sold 315.02 million Equipacific shares at ₱3.65 per sharre.

Of the ₱1.15 billion, ₱920 million will be paid upon closing while the balance of ₱230 million will be paid within six months after the closing date, subject to the completion of certain post-closing obligations.

“With the acquisition, MWPV’S service coverage in Laguna is expected to increase from 21 percent to 27 percent,” Manila Water said noting that, it will also contribute to MWPV’S earnings.

It added that, “Currently, Laguna Water, a joint venture between MWPV and the Provincial Government of Laguna, provides water, wastewater, and environmental services to municipalities of Santa Rosa, Cabuyao, Binan, Pagsanjan, and several areas in Sta. Cruz, Pakil, Victoria and Calauan.”

Laguna Water also provides water and wastewater services in various real estate developments in Laguna, which includes Bellavita (in Pila, Alaminos and San Pablo), Amaia (in Calamba and San Pablo) and Ayala Greenfield Estates - Calamba.

“The acquisition will provide MWPV with the opportunity to optimize operational synergies with Laguna Water for the benefit of the customers in the province of Laguna,” said Manila Water New Business Development Head Barny Kim. (James A. Loyola)