Mla Water oks add’l P700M investment in 2 subsidiaries

MANILA, Philippines - Ayala-led Manila Water Co. Inc. has approved additional investments worth over P700 million for its subsidiaries Manila Water Total Solutions Corp. and Manila Water Philippine Ventures Inc.

In a disclosure to the Philippine Stock Exchange yesterday, the company said its board approved the additional investment of P492 million in Total Solutions.

“The investment shall be effected at such time and frequency as may be necessary for the full commercialization of the after-the-meter products and services of Total Solutions,” the company said.

Total Solutions is a wholly-owned subsidiary of Manila Water.

Aside from Total Solutions, Manila Water’s other wholly-owned Subsidiary, Philippine Ventures, is also receiving an additional investment of P250 million as approved by the board.

“The investment shall be used to fund the operations of Philippine Ventures which is the vehicle intended by the company to hold its investments in its domestic operating subsidiaries,” Manila Water said.

Philippine Ventures, formerly AAA Water Corp., holds shares of various units of Manila Water including Clark Water Corp., Boracay Island Water Co., Inc., Manila Water Consortium Inc. and Total Solutions.

Apart from the additional investments, the company also declared cash dividends for the first semester of the year amounting to P0.4075 per share on outstanding common shares and P0.04075 per share on participating preferred shares.

The dividends will be paid on March 20 to stockholders of record as of March 6.

Last year, Manila Water’s net income inched up one percent to P5.81 billion from P5.75 billion in 2013.

The company derives most of its income from its Metro Manila east zone concession area that covers parts of Quezon City and Makati, the southeastern parts of Manila, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong, and Rizal province.