Maynilad hikes capital to P3.34 billion

Maynilad Water Services Inc., which distributes water to the western part of Metro Manila is raising its authorized capital stock from P1.475 billion to P3.34 billion.

Out of the P1.865 billion increase, P466.97 million has been subscribed and paid for by DMCI-MPIC Water Co. Inc., the consortium that won the right to operate the west concession in 2006.

The new equity will be used to finance Maynilad’s expansion projects.

The consortium comprises the Consunji family’s DMCI Holdings Inc. and Metro Pacific Investments Corp., the local flagship of the First Pacific Co. Ltd. of Hong Kong.

Maynilad recently got the Quezon City Regional Trial Court’s approval for its plan to exit from rehabilitation following its successful compliance with the 2005 rehabilitation plan.

Last year, Maynilad reported a 25 percent increase in net income to P1.25 billion from only P1 billion.

Non-revenue water has been reduced to an average of 66 percent from an average of 68 percent. Total volume of billed water also rose nine percent to 286 million cubic meters from 262 million cubic meters while total billed customers increased four percent to 703,519.

Core net income contribution to MPIC was reduced by financing charges and operating expenses incurred by DMCI-MPIC parent company amounting to P1.1 billion.

The financing charges relate to the $192 million loans availed from First Pacific Company Ltd. and Ashmore Investment Management Ltd. to fund the cash deposit securing the standby letters of credit required for the acquisition of Maynilad. These were partially offset by financing income from same cash deposits.

Reports earlier said that after the fresh capital infusion, DMCI would retain 41.2 percent of DMCI-Metro Pacific while MPIC would end up with 31 percent. First Pacific and Ashmore, on the other hand, will control 20.6 percent of Maynilad.

Deutsche Bank and Singaporean financing firm Noonday Asset Management Group, on the other hand, will end up with 7.2 percent.

Currently, Maynilad has a total of 677,985 billed water services, equivalent to a population of around 6.2 million in the west zone which covers nine cities and two municipalities in Metro Manila and one city and five towns in the Cavite province.