Marubeni gets stake in Maynilad Water
AFTER discussions that lasted almost a year, Metro Pacific Investments Corp. (MPIC) and DMCI Holdings Inc. (DMCI) have decided to unload stakes in Maynilad Water Services Inc. (Maynilad) and pave the way for Marubeni Corp.’s entry in the water concessionaire.
MPIC and DMCI on Thursday jointly announced the completion of their discussions with Marubeni for the Japanese firm to acquire a 20- percent economic interest in Maynilad.
Marubeni, through an affiliate, will acquire 21.54 percent in DMCI, the joint venture holding company that will hold 92.85 percent of the shares Maynilad.
MPIC is reducing its economic interest in Maynilad by 4 percent and DMCI by 16 percent to facilitate the entry of Marubeni.
Following the closing of the transaction, the economic interests in Maynilad will be distributed as follows: MPIC, 52.8 percent; DMCI, 25.24 percent; Marubeni, which recently acquired 20 percent and 1.96 percent for the remaining shareholders.
“This minor reduction in our economic interest in Maynilad allows us to expand the shareholder roster as we take Maynilad to the next stage of development through significantly increased investment in sewage and waste water management,” Manuel Pangilinan, chairman of MPIC and Maynilad, said
“I believe Marubeni will be a valuable addition to the MPIC/DMCI partnership, which has been so successful to date in delivering expanded and improved clean water provision to millions of people in our concession area,” he added.
For his part, Isidro Consunji, president of DMCI, said that Marubeni has been a strong partner of DMCI for many years and its entry into Maynilad will help DMCI gain access to Marubeni’s technical and engineering expertise and Japanese financing institutions.
In March 2012, MPIC and DMCI said that they may sell up to 20 percent of their stake in Maynilad to bring in Japanese firm Marubeni.
At the sidelines of the EuroMoney Philippine Investment Forum last year, Consunji said that DMCI may sell 12 percent of its shareholdings in Maynilad, while the local unit of Hong Kong-based First Pacific Co. Ltd. will retain control with a dilution of 8 percent.
Jose Ma. Lim, MPIC president and chief executive, also said earlier that negotiations with Marubeni were in the advanced stage with Consunji.