Manila Water makes new Vietnam investment

MANILA, Philippines - The Singapore unit of Ayala-led Manila Water Co. Inc. is acquiring 24.5 percent in another Vietnamese water firm to strengthen its foothold in the Southeast Asian country.

In a regulatory filing Wednesday, MWCI said its Singapore-based subsidiary Manila Water South Asia Holdings Pte. Ltd. (MWSAH) has completed the execution of a capital transfer agreement with Saigon Water Infrastructure Corp. (SII) for the acquisition of 24.5 percent of the charter capital of its subsidiary Cu Chi Water Sewerage Co. Ltd. for P320 million ($6.87 million) in another Vietnamese water firm to strengthen its foothold in the Southeast Asian country.

MWCI describes Cu Chi Water as a limited liability company in Vietnam engaged in water exploitation, treatment and supply and sewerage and wastewater treatment, installation of water supply system and management consultancy services.

Manila Water said it would provide the exchange with additional information regarding the transaction.

Manila Water still derives most of its income from its Metro Manila east zone concession area that covers parts of Quezon City and Makati, the southeastern parts of Manila, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong, and Rizal province.

The company, however, has been expanding its presence overseas. In Vietnam, it already operates Thu Duc Water Holdings Pte. Ltd., and Kenh Dong Water Holdings Pte. Ltd.

Last month, Manila Water announced it is pouring fresh investments of P198.43 million in its wholly-owned Singapore-based subsidiary Manila Water Asia Pacific Pte. Ltd. (MWAP).

MWAP is the holding firm of Manila Water’s overseas operations Manila Water South Asia Holdings Pte. Ltd., Thu Duc Water Holdings Pte. Ltd., and Kenh Dong Water Holdings Pte. Ltd.