Razon to convert Manila Water into global water giant

MANILA, Philippines — Tycoon Enrique Razon Jr. is expected to transform Manila Water Co. into a global water giant.

Razon, who acquired a stake in Manila Water last year, is chairman of global International Container Terminal Services Inc. (ICTSI) which is in at least 19 countries.

Manila Water chairman Fernando Zobel said Razon’s group has an “enormous port operation globally and an enormous amount of experience in regulated businesses.”

Once regulator approvals are in place and the Razon Group completes its tender offer, the ports tycoon is expected to formally step in and implement management changes, with the Ayalas retaining their economic interest, industry sources said.

“There will surely be some changes on the board, where they will bring some of their own representatives. And as far as management is concerned, I’d like to believe that we will be able to find the best from both organizations to complement each other and make Manila Water even stronger,” Zobel said.

In February last year, Razon’s Prime Strategic Holdings Inc. signed an agreement with Manila Water to acquire 820 million common shares at a price of P13 per share.

Razon then made a tender offer to acquire the shares held by minority investors. The tender offer, which will run from April 27 to May 25, covers up to 1.1 billion common shares of Manila Water.

Razon initially acquired a 25 percent interest in the water utility for P10.7 billion, but Ayala later on granted Razon a 51-percent voting interest in Manila Water.

As a result, Ayala’s effective voting interest in Manila Water will drop to 31.6 percent.