MANILA, Philippines — Ports magnate Enrique Razon has secured more shares in Ayala-led Manila Water Co. Inc.
In a regulatory filing, Ayala Corp. said its unit PhilWater Holdings Co. Inc. and Razon’s Trident Water Co. Holdings Inc. recently executed a share purchase agreement allowing the latter to acquire 2.69 million preferred shares in the east zone concessionaire.
The purchase reflects a 39.09 percent voting stake and 8.19 percent economic stake in Manila Water.
The purchase price is P1.80 per share for a total consideration of P4.84 billion.
The payment terms have been set at P100 million payable on or before three business days from signing of the share purchase agreement, P2.37 billion payable on or before four years, while the remaining balance of P2.37 billion is payable on or before five years.
It was February last year when the Ayala Group granted proxy rights to Razon, allowing him to achieve a 51 percent voting interest in Manila Water. This followed Razon’s acquisition of 820 million common shares, representing a 25 percent stake in the utility firm, for P13 per share.
Ayala Corp., the parent company of Manila Water, remains a major shareholder with a 38.6 percent stake.
It took Razon as an investor in Manila Water to strengthen the water concessionaire at a time when it has been the subject of relentless attacks from President Duterte.
The transaction brought P10.7 billion in fresh funds for the company to support its capital spending program to improve the water and wastewater distribution system in Metro Manila’s east zone concession.