PinoyBusiness.ORG – Home

The Ayala Corporation currently owns 31.7 percent of Manila Water Co., but this will increase because it agreed to buy P3.5 billion worth of additional common and preferred shares of the water utility service company from British partner United Utilities Pacific Holdings BV.

The United Utilities’ 81.9 million common shares and two billion preferred shares, representing 11.6 % in Manila Water, will be acquired by the Ayala group based on their agreement. This will effectively increase the conglomerate’s economic interest in Manila Water to 43.3 percent.

Ayala Senior managing director Rufino Luis Manotok, in the company’s disclosure to the Philippine Stock Exchange (PSE), said United Utilities will be continuing to provide technical services to Manila Water and retain its voting rights in the utility company through Philwater Holdings Co. (Philwater), which holds Manila Water’s outstanding preferred shares.

That is because Philwater is partially owned by the United Utilities, which has 40% stake in it, in partnership with Ayala who owns 60% of the company. It has been the group’s technical partner in Manila Water since it began operating the concession in Metro Manila east zone in 1997.

Said concession has already been approved for renewal by the Metropolitan Waterworks and Sewerage System (MWSS). With the approval, Manila Water’s concession has been extended up to 2037.

Manila Water has committed to implement a P450-billion investment plan for the east zone. The zone covers parts of Manila, San Juan Taguig, Antipolo, Taytay, Pateros, Jala-Jala, Angono, Baras, San Mateo, Rodriguez, Pasig, Marikina, Makati, Mandaluyong and most of Quezon City.

Manotok said the company continues to tap opportunities beyond the East Zone.

Recently, Manila Water took over the concession of Sta. Rosa, Biñan and Cabuyao and Laguna. It has also entered into a joint venture agreement with the Philippine Tourism Authority to develop the water distribution and sewerage facilities in Boracay.