MANILA, Philippines - The Singapore unit of Ayala-led Manila Water Co. Inc. has increased its stake in Vietnamese water firm Saigon Water Infrastructure Corp. (SII).
In a disclosure to the Philippine Stock Exchange, Manila Water said Manila Water south Asia Holdings Pte. Ltd. completed the acquisition of additional 6.15 million primary shares for P230.2 million.
“As a result of this additional subscription, the company now holds 38 percent of the outstanding capital stock of SII,” Manila Water said.
“The transaction is in line with the investment strategy of Manila Water in Vietnam and Asia,” it added.
SII is a holding company in Vietnam listed on the Ho Chi Minh City Stock Exchange. It aims to become the first fully integrated water services firm in Vietnam, providing both water and wastewater treatment service as well as engineering, operation and management services.
It has holdings in Tan Hiep 2, a bulk water company supplying 300 million liters per day to the state-owned utility serving the area of Hoc Mon, Ho Chi Minh City where it has 75,000 water service connections.
Outside Ho Chi Minh, SII has interest in a bulk water company that supplies 20 million liters per day in Gia Lai province, as well as a water distribution company in Lam Dong province.
Manila Water still 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.
The company, however, has been expanding its presence overseas. In Vietnam, it already operates Thu Duc Water Holdings Pte. Ltd. and Kenh Dong Water Holdings Pte. Ltd.