Manila, Philippines - Manila Water Co. Inc. has completed the acquisition of 47.35 percent of Vietnamese utility firm Kenh Dong Water Supply Joint Stock Co.
In a disclosure to the Philippine Stock Exchange yesterday, Manila Water said the acquisition will be coursed through its Singapore unit Kenh Dong Water Holdings Pte. Ltd.
Kenh Dong was established in 2003 to build and operate major water infrastructure facilities in Ho Chi Minh City. Its water treatment plant in the Cu Chi District is slated to start commercial operations by the second semester of the year with a capacity of 200 million liters of water per day (mld).
In addition, Kenh Dong has a bulk water supply contract with Saigon Water Corp. for a guaranteed volume of 150 mld. Sawaco is a state-owned company that manages the water supply system in Ho Chi Minh City.
Manila Water said the cost to acquire the Vietnamese firm’ s interest is not more than 10 percent of the total book value of the Ayala-led company.
The company is the exclusive concessionaire for the East Zone of Metro Manila, comprising 23 cities and municipalities. It continues to expand its market locally with projects in Laguna, Pampanga, Boracay and Cebu.
Manila Water’s management has also been very proactive in dealing with issues relating to the water industry, such as the development of new water sources.
It posted a net profit of P4.27 billion last year, seven percent higher than the year earlier. The company maintained its positive trajectory in the first quarter this year with net earnings growing 64 percent to P1.34 bilion.
As of end-2011, Manila Water had comfortable levels of cash and short-term investments amounting to P5.89 billion. The amount further increased to P6.45 billion at the end of the first quarter of 2012.