Mla Water unit completes acquisition of Vietnam water firm

MANILA, Philippines - The Singapore subsidiary of Ayala-led Manila Water Company Inc. has completed the acquisition of a 31.47-percent stake in Vietnam’s Saigon Water Infrastructure Corporation (SII).

In a regulatory filing, the East Zone concessionaire announced that its wholly-owned subsidiary Manila Water South Asia Holdings Pte. Ltd., has completed the subscription to 18.37 million primary shares of SII at a subscription price of 16,900 Vietnamese Dong per share.

“The transaction is in line with the investment strategy of Manila Water in Vietnam and Asia,” said the company.

SII, which has been listed in the Ho Chi Minh Stock Exchange since September 2012, is reportedly setting its sights on the development of the Sagion Pleiku water plant project in Gia Lai province which will have a treatment capacity of 30,000 cubic meters per day.

Other developments by the company are in the pipeline.

Manila Water earlier said that SII aims to become the first fully-integrated company in the Vietnam water and wastewater infrastructure sector through the construction of water and wastewater treatment plants.

Manila Water first gained traction in Vietnam when it acquired a 49-percent stake in Thu Duc Water Boo Corp. in December 2011.

In 2012, it acquired 47.35 percent of Kenh Dong Water Supply Joint Stock Co.

Both companies have a bulk water supply contract with Saigon Water Corp. (Sawaco).

Manila Water registered an 11-percent increase in its net come for the first semester of the year due to higher billed volume and lower operating expenses.

Its net income for the period reached P2.9 billion in the first six months of the year against P2.63 billion in the same period last year.

Manila Water’s revenues for the first half of the year rose six percent to P7.63 billion against P7.19 billion year-on-year.

Its operating expenses fell two percent to P2.097 billion from P2.135 billion last year.

Earnings Before Interest Taxes and Depreciation (EBITDA) rose 11 percent to P5.791 billion against P5.131 billion year-on-year.

The company’s total billed volume in the first six months of the year rose two percent to 287 million cubic meters (mcm from 281.4 million cubic meters in the same period last year.