Manila Water all set for P38 billion Wawa project takeover

MANILA, Philippines — Billionaire Enrique Razon Jr. is moving a step closer to consolidating his water business, with Manila Water Co. Inc. gearing up for the P38-billion buyout of WawaJVCo Inc. next month.

This comes after Manila Water finalized a share purchase agreement (SPA) with Prime Infrastructure Inc. to acquire the latter’s interests in WawaJVCo, the operator of Wawa Bulk Water Supply project in Rizal.

“Closing shall be subject to customary conditions precedent for transactions of similar nature, and is anticipated to be completed by Sept. 30, 2025,” Manila Water said in a stock exchange filing yesterday.

Manila Water, which serves the east zone of Metro Manila, and Prime Infra earlier signed a binding term sheet involving 3.05 million common shares and 4.76 million non-voting preferred shares.

The total purchase price of about P37.8 billion will be paid in installments, with the initial payment of P6.11 billion targeted on Dec. 15.

The final installment, meanwhile, will be settled in January next year, subject to adjustments to balance sheet items from SPA signing to closing date.

Manila Water has said the WawaJVCo acquisition is aligned with its long-term operational and water security objectives.

“This will provide greater focus and flexibility in water resource allocation, while allowing for more efficient operations and overall cost management of the facility,” the company said.

The Wawa Bulk Water Supply project includes the Upper Wawa Dam, the largest water supply dam to be built in the Philippines in over 50 years.