Marubeni to complete acquisition of 20% Maynilad stake in Q1 ’13

MANILA, Philippines - Japan’s Marubeni Corp. is expected to complete the acquisition of a 20-percent stake in west zone water concessionaire Maynilad Water Services Inc. within the first quarter of 2013, according to one of its shareholders.

“The Marubeni board approved the investment on Dec. 26. (The) closure should be within 45 days,” said DMCI Holdings Inc. president Isidro Consunji said in a text message Thursday night.

DMCI is one of the two major stakeholders of the water concessionaire, the other being Metro Pacific Investments Corp. 

On Thursday, Marubeni announced from Tokyo that its has agreed to acquire a 20-percent stake in the water concessionaire.

In July, Consunji said that Marubeni valued Maynilad at around $2 billion. The acquisition of a fifth of the company would cost at around $400 million.

Marubeni’s entry into Maynilad will give the water concessionaire access to technology and financing throuh Japanese official development assistance loans.

The acquisition by Marubeni of a fifth of Maynilad would entail the sale of 16 percent of DMCI’s ownership, while Metro Pacific will give up four percent.

Consunji  said earlier that upon the clsoing of the acqusition, DMCI’s stake in Maynilad would be reduced to 25 percent while that of Metro Pacific woudl be reduced to 52 percent.

Maynilad is one of the two watre concessionaires in Metro Manila.

Maynilad’s concession area covers the cities of Manila except portions of San Andres and Sta Ana, Quezon City (west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue), the northern part starting from the districts of the Holy Spirit and Batasan Hills), Makati (west of South Super Highway), Caloocan, Pasay, Paranaque, Las Pinas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province