Investors eye PrimeWater

Investors are quietly eyeing to buy out Villar-owned PrimeWater in existing joint ventures the company has with local water districts.

Initial talks have started, say my sources, and may soon move to formal negotiations which would include valuation, due diligence and, if both parties agree, an eventual buyout.

No less than former senator Cynthia Villar, the wife of tycoon and Villar Group chairman Manuel Villar, said her husband wants to “dispose of” the water service provider, which in recent years has become the subject of consumer complaints.

I heard that one group is initially eyeing at least 10 out of the roughly more than 100 locations where PrimeWater is present. Others want to vie for more. These potential investors are water utility companies that are already present in some areas and have a track record in running a water business.

I can imagine that the bigger names in the industry may also be eyeing some PrimeWater locations. I wouldn’t be surprised if others in the water business, including the Razon and the MVP groups, may also be interested in taking over PrimeWater’s locations if the Villars, indeed, decide to sell.

According to its website, PrimeWater’s services include water system development and construction, bulk water supply, water supply improvement and rehabilitation and septage management.

Its coverage is practically across the entire Philippines – from Cagayan Province in the north, Zamboanga City in the south and many provinces in between.

Company data show that it is present in 16 regions, 161 cities and municipalities and 1.7 million service connections.

However, in recent years, complaints from consumers have made their way to social media – from no water to dirty water to expensive billings.

Politics

More than the complaints – which are of course valid – I believe the bigger issue that the Villars are grappling with is political. We all know that the Marcos administration has been going after perceived allies of the Dutertes and the Villars have no qualms showing their support to the Dutertes, especially after the ugly divorce of UniTeam. The lines were drawn.

“Mr. Manny Villar already wants to dispose of PrimeWater since it is only being used against us in politics,” Cynthia told reporters on the sidelines of the 18th Waterlily Festival in Las Piñas last week.

She also said that the problems should not be blamed solely on their company.

For instance, she noted that the water district in San Jose del Monte in Bulacan faced supply problems due to its high elevation.

Manny Villar is no stranger to politics. He knows if the tide is against them or not. I am sure he also knows that somebody close to President Marcos has a stake in some areas where PrimeWater is present and has long been complaining about the company’s services.

He also knows that during Duterte’s time, some businessmen had to sell their investments because of Rody Duterte’s wrath.

The late Bobby Ongpin was the first to be in Duterte’s crosshairs. He was forced to sell PhilWeb. The Zobels eventually decided to sell Manila Water to the Razon Group after Duterte threatened to scrap the government’s contracts with water utility firms.

At the end of the day, here in our nation of 116 million, politics and business are always intertwined. Sometimes, the future of your business will largely depend on your ties to Malacañang – on whether you’re a foe or a friend.

And sometimes, when the political tides shift, the water taps can run dry, too.

FFCCCII mobilizes P10 M for typhoon relief

Kudos to the Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII) and allied civic groups for their effort to pour in P10 million in emergency aid for communities devastated by recent catastrophic typhoon flooding nationwide.

The initiative was coordinated under the Pilipino at Tsino Magkaibigan Foundation.

As part of the mobilization efforts, the newly elected FFCCCII president Victor Lim and other Filipino Chinese community civic leaders personally delivered 10,000 bags of rice to Manila Mayor Francisco “Isko Moreno” Domagoso, providing immediate sustenance to displaced families in the capital.

Other hardest-hit areas across Metro Manila, Bulacan, Pampanga, Tarlac, Pangasinan, La Union and other provinces have also benefited from the relief operations.

“This outpouring of support reflects our community’s unwavering bayanihan spirit,” Lim said.

The mobilization underscores the Filipino Chinese community’s deep commitment to national resilience, targeting both immediate relief and long-term rehabilitation for thousands affected by the disaster.

Last month, FFCCCII also joined the Bacolod Filipino Chinese Chamber of Commerce and other Negros Filipino Chinese Chambers in donating construction materials to help rebuild thousands of homes affected by Kanlaon volcano disturbances in five Negros cities and municipalities.

Indeed, the P10 million for areas devastated by the flood is a significant amount. It is not just P1 million, contrary to a criticism posted on social media.

Of the P10 million, FFCCCII donated P1 million to The STAR’s civic project, Operation Damayan.

Actually, it’s not just the money but Lim and other FFCCCII members also personally visit affected communities.

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Email: [email protected]. Follow her on X @eyesgonzales. Column archives at EyesWideOpen on FB.