MANILA, Philippines — Metro Pacific Investments Corp. is investing in a water company in Vietnam.
In a disclosure to the Philippine Stock Exchange (PSE) yesterday, MPIC said its wholly owned subsidiary MetroPac Water Investments Corp. (MPW) has entered into a share purchase agreement for the acquisition of 45 percent of the outstanding capital stock of BOO Phu Ninh Water Treatment Plan Joint Stock Co.(PNW).
PNW is a water company in Vietnam with a license to serve clean water demand in the Chu Lai Open Economic Zone, and urban areas, industrial zones and adjacent rural areas in Quang Nam province in Vietnam.
Under the transaction, MPW shall purchase 9.9 million shares from an existing shareholder of PNW for 272.4 billion Vietnam dong (VND), equivalent to P615 million, which is subject to price adjustment through an escrow mechanism depending on the fulfilment of certain conditions.
MPW will pay VND 181.6 billion on completion and VND 90.8 billion will be held in escrow.
“The amounts in escrow will be released in tranches upon the satisfaction of certain conditions until July 20, 2018,” according to the disclosure.
PNW has a 50-year build-own-operate contract with the Chu Lai Open Economic Zone Authority.
It is authorized to develop a water supply system that will meet clean water demand in the Chu Lai Open Economic Zone, and urban areas, industrial zones and adjacent rural areas in Quang Nam province.
PNW is also close to completing the construction of a water treatment plant with a capacity of 25 million liters per day (MLD), and has a potential to increase its capacity to 300 MLD.
At home, MPIC is likewise strengthening its water business.
MPW recently bagged the Pampanga bulk water supply project from the Office of the Governor of Pampanga.
It also signed a joint venture agreement with the Cagayan de Oro Water District (COWD) for the formation of a company to undertake the supply of bulk treated water to address the requirements of Cagayan de Oro City.
To date, MPW’s operating water projects collectively provide 152 MLD of water and will increase to 390 MLD when fully developed – equivalent to 28 percent of the current billed volume of Maynilad of 1,370 MLD.