MANILA, Philippines - Metro Pacific Investments Corporation (MPIC) and DMCI Holdings Inc. (DMCI) have concluded the discussions for the sale of a 20 percent interest in jointly-owned Maynilad Water Services, Inc. (Maynilad) to Marubeni Corp. of Japan.
Marubeni, through an affiliate, would acquire a shareholding of 21.54 percent in DMCI-MPIC Water Company, Inc.
(DMWCI), the joint venture company which holds 92.85 percent of the shares in Maynilad.
MPIC is reducing its economic interest in Maynilad by four percent and and DMCI by 16 percent as a result of the transaction.
Following the closing of the transaction, MPIC would retain a 52.8-percent stake in Maynilad, while DMCI would retain 25.24 percent.
Marubeni would get a 21.54-percent stake and other shareholders would hold on to 1.96 percent ownership.
“This minor reduction in our economic interest in Maynilad allows us to expand the shareholder roster as we take Maynilad to the next stage of development through significantly increased investment in sewage and waste water management. I believe Marubeni will be a valuable addition to the MPIC/DMCI partnership which has been so successful to date in delivering expanded and improved clean water provision to millions of people in our concession area,†said MPIC chairman Manuel V. Pangilinan in a statement.
DMCI president Isidro Consunji said Marubeni’s entry into Maynilad would give the water concessionaire access to technical and engineering expertise as well as access to Japanese financing institutions.
“Marubeni has been a strong partner of DMCI for many years. Its entry into Maynilad will help us gain access to
Marubeni’s technical and engineering expertise as well as to Japanese financing institutions, thereby assisting in the further development of Maynilad,†Consunji said.
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.
Maynilad is one of the two water concessionaires in Metro Manila.
It 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.
Marubeni already has presence in the Philippines through Marubeni Philippines Corporation which is engaged in chemical, minerals, energy, general merchandise, development and construction, transport and industrial machinery, agriculture, marine industries, power, IT and telecoms, as well as transportation and infrastructure.