MPIC unit buys majority stake in water utility firm for P1.7 B

MANILA, Philippines - Metropac Water Investments Corp. (MWIC), a wholly-owned subsidiary of infrastructure and tollways conglomerate Metro Pacific Investments Corp. (MPIC), has acquired a majority stake in in Eco-System Technologies International Inc. (ESTII) for P1.7 billion.

ESTII is engaged in the business of designing, supplying, constructing, installing, and operating and maintaining wastewater and sewage treatment plant facilities, MPIC said in a disclosure to the Philippine Stock Exchange (PSE) yesterday.

In its disclosure, the company said MWIC acquired 65 percent of the outstanding capital stock of ESTII, which would allow MPIC to diversify its water sector investment holdings.

Furthermore, with the acquisition, MPIC would also be able to invest in the high growth wastewater EPC (engineering, procurement, construction) and O&M (operations and maintenance) markets.

The acquisition was done through the purchase of 12 million Class A common shares from ESTII representing 60 percent of total outstanding capital stock of ESTII and subscription to one million Class C common shares representing five percent of its total outstanding capital stock.

The value of the purchase of 12 million Class A common shares is P1.7 billion plus P100 million in cash for the subscription to Class C common shares.

ESTII has a leading market position in the Philippine wastewater industry and has a valuable client base comprised of major mall, office, commercial and residential property developers, hotels and resorts, hospitals and industrial facilities.

Its track record includes designing and building more than 500 high performing wastewater treatment and water recovery plants in the Philippines.

It is also an EPC contractor for MWIC for sewage treatment plants with an aggregate capacity of at least 21,500 cubic meters per day.